Malaysia Takes Enforcement Action Against Unregistered Cryptocurrency Exchange Bybit

Malaysia’s Securities Commission (SC) has taken a tough stance against Bybit, ordering the cryptocurrency exchange to cease operations and suspend its digital platforms in the country due to unregistered activities.

According to official statements from the regulator, Bybit had failed to register as a Recognized Market Operator (RMO) with the SC, violating Section 7(1) of the Capital Markets and Services Act 2007. The commission emphasized that any dealings with unregistered exchanges pose significant risks for investors, including exposure to financial crimes.

The SC took swift action against Bybit, issuing an ultimatum requiring the exchange to cease operations within 14 business days from December 11, 2024. This includes halting its advertising activities and discontinuing support services for users in Malaysia.

Bybit had previously been listed on the Investor Alert List since July 2021, further emphasizing the severity of the situation. It is unclear at this time what consequences await Bybit’s leadership, including CEO Ben Zhou, who has been at the forefront of the exchange’s efforts to secure a license from the SC.

In an effort to protect investors and maintain market integrity, the SC reminded the public to be vigilant against suspicious websites or unsolicited investment schemes that promise unusually high returns with little risk. The commission also reiterated that only six licensed crypto exchanges operate in Malaysia, ensuring investor protection and compliance with local regulations.

Bybit has responded to the situation by reassuring its Malaysian customers that it will resume operations once all necessary licenses have been secured from the SC. While this move may cause temporary inconvenience for users, the exchange is working diligently to rectify the situation.

As a major player in the cryptocurrency space, Bybit’s actions and future plans remain under close scrutiny as regulators continue to crack down on unregistered exchanges globally.

Source: cryptotale.org