Malaysian regulator warns investors about the dangers of the Huobi exchange
Users of the platform will not be able to get legal support in case of incidents, because the company does not have registration in the country
24.08.2022 - 09:45
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What’s new? The Securities Commission (SC) of Malaysia has published a statement about cryptocurrency exchange Huobi Global’s inclusion on the Investor Alert List. The Commission warned that it does not regulate or monitor the operation of an unregistered platform in the country.
Huobi Global [https://t.co/la9Y3ntGuq] has been added to the SC’s Investor Alert List for operating a digital asset exchange (DAX) in Malaysia without being registered with the SC. pic.twitter.com/z3IGgnCa0t— SC Malaysia (@SecComMY) August 22, 2022
What other statements have been made? SC stressed that companies operating in the financial markets must be approved by the Commission, even if they have permits to operate in other countries. In this regard, users are discouraged from investing in unregulated entities, whose interactions carry risks and do not allow regulators to provide the necessary legal support in case of incidents.
What is known about Huobi? It is a digital asset trading platform founded in 2013 in Beijing. Currently, it is based in Seychelles, it also has offices in Hong Kong, South Korea, Japan, and the US. The exchange has its own token called Huobi Token (HT), which is used to receive fee discounts, as well as additional rewards and bonuses. According to Binance, HT is trading at $4,71 at 09:20 UTC on August 24, having gained 6,54% per day. The asset has a total capitalization of $720,58 million (CoinMarketCap information).
In July, a subsidiary of Huobi called HBIT Inc received its Money Services Business (MSB) license from the US Financial Crimes Enforcement Network (FinCEN). The permit allows HBIT Inc to operate as a fiat currency exchange.
On August 18, the exchange’s stablecoin, HUSD, temporarily lost its peg to the US dollar. The developers explained this by the closure of market maker accounts in some regions in accordance with legal requirements. The time difference in banking hours led to a short-term liquidity problem, which was subsequently resolved.
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