The Securities Commission of Malaysia (SC) has ordered cryptocurrency exchange Bybit and its CEO Ben Zhou to halt all operations and advertisements in Malaysia due to non-compliance with regulatory requirements.
Bybit was accused of offering cryptocurrency services without proper registration as a recognized market operator, violating Malaysia’s Capital Markets and Services Act 2007.
The SC instructed Bybit to shut down its platforms, including its website, apps, and Telegram group, by December 25, 2023. Bybit and Zhou were previously flagged by the SC in July 2021 for similar offenses. The regulator warned that unregistered platforms expose investors to significant risks due to the lack of legal protections.
Currently, only six registered crypto exchanges are authorized to operate in Malaysia. Bybit acknowledged the SC’s enforcement action, expressing hopes to reenter the Malaysian market after obtaining the necessary licenses.
This marks Bybit’s second recent regulatory challenge, following its exit from the French market in August 2023 due to stricter licensing requirements under the EU’s upcoming Markets in Crypto-Assets (MiCA) regulations. The developments highlight increasing global regulatory scrutiny on cryptocurrency exchanges.
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