The Securities Commission (SC) of Malaysia has halted Bybit’s operations, accusing the exchange of operating without adequate license. The country’s regulator said Bybit and its CEO Ben Zhou failed to register as a Recognized Market Operator (RMO).
As a result, the SC ordered Bybit to shut down its website, and mobile app by December 25, meaning Malaysian users will no longer have access to the exchange afterward.
Malaysian Regulators Crack Down on Bybit’s Operations
Malaysian authorities also asked Bybit to cease ads targeting Malaysian customers and to close its Telegram group for local users.
Reports claim that Bybit and its CEO, Zhou, comply with all SC demands. Malaysia’s Capital Markets and Services Act 2007 considers unregistered digital service providers illegal. Interestingly, Bybit has been on the SC’s radar since 2021. Authorities warned investors about using the platform. However, Bybit failed to secure the necessary license to operate legally.
A Distress Update for Bybit users in Malaysia
Starting from 24th December 2024, Bybit is restricting its Malaysian users from access through their homeland. Below attached with proof. For those who are using Vpn or access from other region, I promise will provide updates soon.… pic.twitter.com/VRLqdkkxIp
— James Ong (@OngJunWei10) December 26, 2024
The SC has urged Malaysian crypto users only to use exchanges registered with authorities. According to the SC, users who use unlicensed exchanges are not protected by Malaysian laws. In addition, such users are exposed to risks such as fraud and money laundering.
Malaysian authorities have increased their scrutiny of crypto transactions, protecting users from security risks. Authorities raided crypto companies that failed to report crypto transactions as required by law.
The SC has reprimanded Bybit Technology Limited and its CEO, Ben Zhou, for operating a digital asset exchange (DAX) without proper registration. Bybit has been listed on the SC’s Investor Alert List since 2021.
📰 Read the full media release here: https://t.co/CaF5UFgES9 pic.twitter.com/T2sp9NOf7g
— SC Malaysia (@SecComMalaysia) December 27, 2024
Furthermore, regulators have also flagged platforms like Atomic Wallet, deemed illegal for failing to register as a digital service provider. These measures seek to ensure that Malaysians only access and use vetted platforms.
The SC claims only 6 exchanges are licensed to operate in Malaysia. These limited numbers are an effort to regulate market operators.
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