The Malaysian Securities Exchange (SC) has hammered down crypto exchange Huobi for allegedly failing to register correctly. Huobi has been urged to cease operations in the region entirely.

Having put the Huobi crypto exchange on its “Investor Alert List” since August 2022, the country’s financial regulator has finally taken action against the bitcoin (BTC) trading venue.

According to sources, the agency has issued a public statement against the exchange and its founder, Leon Li, ordering the firm to cease operating in the country and disable its website and app on the relevant app stores.

Moreover, the SC has also clarified that Huobi can no longer publish its advertisements in the country. Huobi investors in Malaysia have been advised to withdraw their funds from the platform and close their accounts.

The SC revised its digital assets regulation in October 2020, to include provisions for digital asset custodians (DAC) and initial exchange offerings (IEO).

At the time, the agency claimed the new guidelines will enable the SC to foster responsible innovation in the crypto space while also managing associated risks and protecting consumers.