Malaysia’s Securities Commission (SC) has ordered cryptocurrency exchange Bybit to suspend operations in the nation for failing to register as a digital asset exchange (DAX). The regulatory regulation mandates that Bybit shut down its website, mobile apps, and other digital platforms within 14 business days of December 11, 2024. Furthermore, Bybit must discontinue promotional efforts and delete its Telegram support group for Malaysian users.
The task of ensuring compliance with these directions fell to Ben Zhou, CEO of Bybit. By December 27, the SC verified that Bybit had followed the order.
This move comes after Bybit’s recent decision to suspend operations in France, citing greater regulatory scrutiny there. The Malaysian regulator warned that unregistered platforms pose considerable dangers to investors, including fraud and money laundering.
Protecting investors from unlicensed platforms.The SC emphasized that operating without registration as a Recognized Market Operator (RMO) is a significant violation of Malaysian securities law. The regulator advised investors to only participate with regulated platforms that follow strict criteria aimed to protect their interests.
The court noted that Malaysian securities laws do not protect investors who deal with unregistered entities, leaving them vulnerable to fraud and other risks.
Malaysia’s broader crackdown on cryptocurrency violationsMalaysia has stepped up its efforts to tackle cryptocurrency-related offenses. Earlier this year, officials established “Ops Token,” which targets tax avoidance in cryptocurrency trade, and blacklisted a number of unregistered firms, including Web3 wallet provider Atomic Wallet.
This enforcement action is part of a larger plan to maintain market integrity and investor protection in Malaysia’s changing financial landscape. Bybit’s compliance with the directives is a step toward ensuring accountability in the cryptocurrency business.
