Details

Bybit, a cryptocurrency exchange based in Dubai, has been ordered by Malaysia's Securities Commission (SC) to cease operations within the country due to unlicensed activities. The SC directed Bybit to disable its website and mobile applications accessible in Malaysia within 14 business days from December 11, 2024. 

Additionally, the exchange was instructed to halt all promotional activities targeting Malaysian investors and to terminate its local Telegram support group.

This enforcement action follows Bybit's inclusion on the SC's Investor Alert List in July 2021 for operating a digital asset exchange without the necessary registration. 

Operating such an exchange without authorization is a violation under Section 7(1) of Malaysia's Capital Markets and Services Act 2007. The SC emphasized that engaging with unlicensed platforms exposes investors to risks such as fraud and money laundering, as these entities are not subject to Malaysian securities laws.

Bybit has complied with the SC's directives, disabling its platforms in Malaysia as of December 27, 2024. The exchange has also faced regulatory challenges in other jurisdictions, including a recent announcement to suspend services for French users starting January 8, 2025, due to increased scrutiny from French financial authorities.

The SC advises investors to engage only with Recognized Market Operators (RMOs) registered with the commission, as these entities have undergone stringent regulatory scrutiny to ensure investor protection under Malaysian securities laws. Currently, only six exchanges are licensed to operate within Malaysia.

This development underscores the increasing regulatory oversight in the cryptocurrency sector, with authorities worldwide enforcing compliance to safeguard investors and maintain market integrity.