Bybit shuts down local operations in Malaysia following regulatory order
Bybit acknowledged the inconvenience caused by the regulatory action
Bybit, one of the world’s largest cryptocurrency exchanges, has ceased its local operations in Malaysia following an order from the Securities Commission Malaysia (SC).
The SC flagged the platform for offering its services in the country without proper registration, a move that led to significant regulatory scrutiny.
Regulatory action and compliance concerns
The SC's decision was part of broader efforts to protect investors and ensure that only registered platforms operate within Malaysia’s borders. In 2021, Bybit was added to the SC’s “Investor Alert” list for operating a digital asset exchange (DAX) without the necessary registration.
The Securities Commission Malaysia (SC) has issued a decision regarding Bybit Technology Limited and its CEO Benu Zhou for operating a digital asset exchange (DAX) in Malaysia without registration:
1. Disable Bybit's website and mobile applications or any other digital application platform in Malaysia within 14 business days from December 11, 2024.
2. Immediately cease distributing, publishing or sending any advertisements, whether in social media posts or otherwise, to Malaysian investors.
3. Immediately close the Bybit support group on Telegram for Malaysians.
The SC emphasized that investors in unregistered platforms are not protected under Malaysia’s securities laws, potentially exposing them to fraud and other financial risks.
Bybit’s response and future plans
In a message to its Malaysian users via Telegram, Bybit acknowledged the inconvenience caused by the regulatory action, expressing its intention to resume operations once it has secured the appropriate licenses.
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CEO Ben Zhou reiterated the exchange’s commitment to complying with local regulations and ensuring a safe environment for investors. Bybit continues to hold licenses in other regions such as Kazakhstan and Georgia and is working to obtain regulatory approval in other jurisdictions, including Austria.
This move underscores the growing pressure cryptocurrency exchanges face to comply with local regulations as governments around the world continue to tighten their oversight of the sector.
Earlier we wrote that Bybit celebrates P2P 3rd anniversary with $100,000 in rewards.
