Huobi Global crypto Exchange is in trouble
It seems that the trouble for the crypto companies has started and different exchanges are going through different problems in various countries. I remember that in the last bearish market, some of the exchanges had to announce the shutdown of their operation. That situation might repeat itself because it is a tough time when these companies are not able to manage their operation due to revenue reductions and they're not able to manage the expenses with this.
We have already gone through the news that Hotbit exchange is shutting down its operation and this is primarily because they believe that now centralized exchanges are going to be in trouble in the current market situation. I asked them if the compliance has also become so tough for them to operate and as a result, they have decided to discontinue their exchange services and hence announced the closure. Huobi Global has also been warned by the Malaysian government to stop its operations as the exchange is not registered in the country. One thing that is difficult to understand how come to the countries are not aware of the registration is the status of any company that has been operating for such a long period.
I think I asked for the requirement any company must get registered first before they start their operation. Since this exchange has been operating in Malaysia for quite some time so it is hard to believe that the government was not aware but now whatever the situation but you just have to deal with it. It is one of the leading exchanges that operate in multiple countries so users must be holding a good amount over there and now if the exchange had to stop their services in Malaysia then it is a big problem for the users. It is not always easy to communicate the change to all of you just because in less time. Some of the people are not even available.
The government also needs to understand that taking such harsh dishes in a short period is not the right way instead they can give enough time for the exchange to correct the mistake if any. Giving such short notice can create a lot of trouble for the company as well as users and it is better to find a way out that can work well for everyone including the government. If the exchange is operating in the country they must be paying the taxes and if not then they should however to get it facilitated it is the responsibility of the government to inform them and penalise if something is not in order. This is a better decision I will leave rather than ask them to seize the operation with immediate effect as it will affect lots of people using their platform and trusting with their hard-earned money.
According to an official statement from Securities Commission Malaysia (SCM) on May 22, Huobi Global failed to register as a cryptocurrency exchange operator and must cease all activity. The company has been directed to disable its website and mobile applications on Apple Store and Google Play.
It is not recommended to keep the funds in centralized exchanges if you're not trading because the kind of scenarios happening these days is creating a lot of negativity around. If the exchange stops there operations in Malaysia then probably some of the users will lose access to their funds because people are not always I will be able to get the update. It's fine if the Malaysian government decides to close the business for this exchange but they are supposed to provide enough time so that disclosure can be smooth and does not affect the users at the same time.
These days even the decentralized wallets are the hardware wallets that are also in the news because of some unexpected regions so let's see how things turn out in the coming days because it is not a good experience. Whatever crypto coins I am holding is my money and I should be the one to decide whether I want to disclose this information or the access to someone else or not.
If I do not get full control of the hardware wallet then also it does not make any sense to buy such expensive devices rather keeping in the centralized wallet is better as there is hardly any difference in the overall authority. I do not have the hardware wallet with me because most of my investment in crypto remains in the form of a hive and the good thing is that this is safer as hive power in my wallet. It is logged for 13 weeks and since I'm an active user so I keep on checking my wallet quite frequently and if something goes wrong then I will be noticing it for sure. Once I object to something wrong then I will take action immediately and this is what makes the holding more secure.
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The sudden short notice of shutting down the exchange was quite a surprise for most users, on the other hand if the Malaysian government are aware of huobi not well registered all this while they should have call their attention anyways it a big lesson for other exchange to learn from, although the centralized policies are not soft on crypto space. Thanks for the share.