news 
Malaysia Halts Bybit Operations Over Regulatory Breach
The Securities Commission (SC) in Malaysia has ordered the cryptocurrency derivatives exchange Bybit and its CEO, Ben Zhou, to suspend their operations immediately due to a regulatory breach. The decision was made after an investigation revealed that the platform had been operating without proper registration.
According to sources close to the matter, Bybit is required to shut down its platforms, halt all advertising activities, and dissolve its Malaysian Telegram support group by December 25. Failure to comply with these directives may result in further action being taken against the company.
The SC has cited investor protection concerns as the primary reason for halting Bybit’s operations. The regulator emphasized that unregistered digital asset operators pose significant risks to investors, which can lead to financial losses and instability in the market.
In response to the directive, Bybit has reportedly complied with the orders and is working towards obtaining the necessary licenses to resume its operations. This comes as no surprise, given the company’s previous listing on Malaysia’s Investor Alert List since 2021, following concerns over the lack of proper registration.
It’s worth noting that this isn’t the first instance where Bybit has faced regulatory challenges. In August, the company exited France due to stricter regulations under the EU’s Markets in Crypto-Assets (MiCA) framework.
The development highlights the importance of regulatory compliance in the rapidly evolving digital asset market. It serves as a stern reminder that unregistered operators are not only a risk to investors but also pose a significant challenge to the overall stability and credibility of the industry.
Bybit has not made any official statements regarding the matter, but it’s expected that the company will continue to work towards obtaining the necessary licenses to resume its operations in Malaysia.
Source: coinpedia.org
