Malaysia has ordered Bybit to halt its crypto exchange operations in the country, as regulators crack down on unregistered platforms.
Malaysia Cracks Down on Unregistered Crypto Exchanges: Bybit Ordered to Halt Operations
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Bybit Faces Enforcement in Malaysia Over Unregistered Crypto Exchange Operations
The Securities Commission Malaysia (SC) announced on Dec. 27 that it has taken enforcement measures against Bybit Technology Ltd. and its CEO, Ben Zhou, citing violations related to the unauthorized operation of a digital asset exchange (DAX) in the country.
The announcement details that the regulator has directed Bybit to disable its “website and mobile applications or any other digital application platform in Malaysia within 14 business days from 11 December 2024.” The company must also discontinue advertisements targeting Malaysian users and shut down its local Telegram support group. Zhou was personally tasked with ensuring adherence to these directives. The SC underscored the severity of Bybit’s breach, stating:
This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The SC views this breach seriously.
“Operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007,” the regulator noted.
The regulator highlighted that unregistered platforms expose investors to significant risks, reinforcing the importance of obtaining necessary licenses to operate within Malaysia. The SC confirmed that Bybit has since complied with the enforcement measures outlined in the directive.
In an effort to safeguard investors, the SC urged the public to only engage with platforms that have been officially registered as Recognized Market Operators. “Investors are reminded to invest and deal only with Recognized Market Operators that are registered with the SC. Registered RMOs have undergone strict regulatory scrutiny and are required to adhere to strict guidelines so that investors are protected under Malaysia’s securities laws,” the regulator stressed, warning:
Those who invest in unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws and are thus, exposed to risks such as fraud and money laundering.
The commission further encouraged the public to report any suspicious websites or unauthorized investment schemes, reinforcing its commitment to maintaining the integrity of Malaysia’s financial market.
