The Securities Commission (SC) of Malaysia has mandated that cryptocurrency exchange Bybit and its chief officer halt all operations and advertising targeting Malaysian audiences due to unregistered operations. In a recent media release, the SC revealed that enforcement proceedings were initiated against Bybit and its business chief, Ben Zhou, for operating a crypto-selling platform in Malaysia without the required registration. Bybit has been instructed to shut down all digital platforms, including their website and mobile applications in Malaysia, and to stop all advertising efforts within 14 business days from December 11.
The SC raised concerns about Bybit’s compliance with regulatory requirements, emphasizing that operating a digital asset exchange without the SC’s Recognized Market Operator registration constitutes an offense under Malaysia’s Capital Markets and Services Act 2007. Bybit and Zhou have been on the SC’s Investor Alert List for similar infractions since July 2021. Bybit has complied with the SC’s directives, although the commission cautioned Malaysian investors about the risks of trading with unregistered platforms, as they lack protection under Malaysian securities laws.
Currently, Malaysia legally recognizes six crypto exchanges, including Luno Malaysia Sdn Bhd and others. Following the enforcement action, Bybit acknowledged the potential inconvenience and expressed hope to resume services for Malaysian investors when the necessary licenses are obtained.
This development follows Bybit’s strategic withdrawal from the French market in August after new licensing requirements were imposed, suggesting the increasing regulatory pressures faced by cryptocurrency exchanges globally.
