Cryptocurrency exchange Huobi, a former ‘big three’ platform, is launching regulated services in Malaysia through a local partnership model. Named ‘Huobi Labuan,’ the company has received a digital asset trading brokerage services license in September.
After the initial filing, they get up to nine months to meet the SC’s regulation standards, during which the exchange is permitted to provide spot and derivatives trading services.
Malaysian law requires cryptocurrency exchanges to register as Digital Assets Exchanges with the SC. Following a nine-month-long probationary period, Huobi Labuan would be eligible to receive full approval from the local securities watchdog.
Huobi customers in Malaysia will be able to make transactions in Bitcoin, Ethereum, EOS alongside over a dozen cryptocurrencies including Huobi’s own HT token. The Singapore-based exchange says the country has been underserved by most global platforms and believes it has a high potential for growth.
In July, the southeast Asian regulator issued a warning against the world’s largest cryptocurrency, Binance, for breaking its securities laws. It said Binance and some other platforms are not authorized to operate in the country nor subject to its regulatory oversight and are thus liable for imprisonment.
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Anyone who engages in regulated activities without a valid license or registration from the SC is committing an offence under the Capital Markets and Services Act 2007. If convicted, they may be punished with imprisonment of up to ten years and fined.
Huobi Is Expanding Aggressively
Huobi is originally from China, but after outstaying its welcome there, it opened offices in Hong Kong, South Korea, and Singapore. Despite regulatory uncertainty, the firm has made inroads into the U.S. through a mutual rebranding with its exclusive US strategic partner, HBUS.
Furthermore, the exchange has been expanding aggressively into trading services in many other jurisdictions around the world, including Argentina, Russia, Korea as well as setting up an office in London.
In addition to local branches, such as Huobi Argentina and Huobi (US), the exchange serves much of the rest of the world through its flagship exchange platform, Huobi Global.
Huobi was the first major crypto platform to have a physical presence in Russia after it opened an office in Moscow two years ago to train local blockchain talent. It also established a Russian-language call center, though it says the local partner retains ‘the privilege rights’ to develop its own digital platforms according to the country’s regulations.