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Malaysia’s SC Cracks Down on Bybit for Unregistered Operations
By Nynu V Jamal | Editor: Mercy
Published: December 30, 2024
In a recent move, the Securities Commission of Malaysia (SC) has taken action against cryptocurrency exchange Bybit for operating without proper registration. The regulatory body ordered the platform to cease its operations in the country and shut down its website, mobile applications, and other digital platforms.
According to reports, Bybit was given 14 business days from December 11, 2024, to suspend its activities, but failed to comply with the directive. As a result, the SC has taken further action against the exchange, mandating it to halt all advertising activities and discontinue support services for users in Malaysia.
Bybit’s failure to register as a Recognized Market Operator (RMO) with the SC constitutes a serious offense under Section 7(1) of the Capital Markets and Services Act 2007. The regulator has cautioned investors about the risks associated with dealing with unregistered crypto exchanges, emphasizing that they will not be protected under Malaysian securities laws.
The SC’s statement warned that trading on such platforms exposes investors to a higher risk of financial crimes. Notably, only six crypto exchanges are currently operating in Malaysia, complying with the country’s regulatory framework.
As part of its efforts to ensure investor protection and prevent financial crime, the regulator has also issued an alert warning Malaysian investors about suspicious websites, phone calls, or emails offering unauthorized investment schemes that promise unusually high returns with little to no risk.
Source: cryptotale.org
