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Malaysia’s Securities Commission (SC) has launched enforcement measures against crypto exchange Bybit and its CEO, Ben Zhou, for operating without the necessary registration.
In a statement issued on Friday, the SC ordered Bybit to halt all operations within Malaysia, including suspending its website, mobile applications, and other digital platforms. The exchange has been given 14 business days from December 11 to comply with these directives. Additionally, Bybit must cease all advertising targeted at Malaysian investors and shut down its Malaysia-specific Telegram support group.
The SC highlighted that operating a digital asset exchange (DAX) without being registered as a Recognised Market Operator (RMO) constitutes a violation under Section 7(1) of Malaysia’s Capital Markets and Services Act 2007. “This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests,” the regulator said.
Bybit and Zhou were already on the SC’s Investor Alert List since July 2021 for similar violations. Following the latest enforcement actions, the regulator confirmed that Bybit has complied with its directives. However, the SC issued a stern reminder to investors: engaging with unregistered platforms exposes them to significant risks, including the potential for financial fraud.
Currently, only six crypto exchanges hold the necessary registration to operate legally in Malaysia.
“We understand that this may cause some inconvenience,” Bybit acknowledged in a post on its Malaysian Telegram channel. “Once we have secured the appropriate licenses, we look forward to reconnecting with you again in the future.”
Bybit’s regulatory challenges are not limited to Malaysia. Earlier this year, the exchange exited France, citing stricter licensing requirements introduced ahead of the European Union’s upcoming Markets in Crypto-Assets (MiCA) framework.
