Malaysia’s Securities Commission Orders Bybit to Cease Operations

The Securities Commission of Malaysia has instructed Bybit, a cryptocurrency exchange, and its chief officer to halt the operation of all digital platforms in Malaysia. This decision comes after the Commission began enforcement proceedings against Bybit for providing a crypto-selling platform without adequate registration.

Non-Compliance with Regulatory Obligations

The SC raised concerns regarding Bybit’s compliance with regulatory obligations and investor protection. According to the Commission, offering businesses a digital asset exchange without obtaining the SC’s Recognised Market Operator registration is an offence under section 7(1) of the Capital Markets and Services Act 2007.

Both Bybit and its chief officer, Ben Zhou, have been included in the SC’s Investor Alert List for similar regulatory offenses since July 2021. The Commission has also ordered Bybit to cease advertising to Malaysian investors and deactivate its local Telegram support group.

Compliance and Investor Protection

Bybit has complied with the enforcement directions, as reiterated by the SC. However, the Commission cautioned Malaysian investors that trading with unregistered platforms means they are unprotected under the securities laws of Malaysia, making them more susceptible to financial crimes.

Currently, there are only six registered crypto exchanges that can legally operate in Malaysia:

  • HATA Digital Sdn Bhd
  • Luno Malaysia Sdn Bhd
  • MX Global Sdn Bhd
  • SINEGY DAX Sdn Bhd
  • Tokenize Technology Sdn Bhd
  • Torum International Sdn Bhd

Future Plans and Regulatory Scrutiny

We understand that this may cause some inconvenience. Once we have secured the appropriate licenses, we look forward to reconnecting with you again in the future.

Bybit has confirmed the enforcement action on its Malaysian Telegram channel, expressing hope to reconnect with Malaysian investors in the future if they obtain the necessary licenses.

This marks the second country where Bybit’s operations have been impacted recently, following the exchange’s departure from the French market in August due to stricter licensing requirements.

Stay up-to-date with the latest news and developments in the world of cryptocurrencies and finance on Global Crypto News.

Post Views: 0