The Securities Commission of Malaysia (SC) has directed crypto exchanges bye bit and its CEO Ben Zhou Stop all operations inside the country.
In a recent press release, the financial regulator explained that the order stemmed from Bybit's failure to secure a license to operate as a digital asset exchange (DAX) under local regulations.
Regulatory repression
The Security Council expressed concern over Bybit's non-compliance with local laws and emphasized the importance of protecting investors.
Under the Malaysian Capital Markets and Services Act 2007, it is illegal to operate the DAX without obtaining approval as a Recognized Market Operator (RMO). The SC emphasized the seriousness of the violation and its potential dangers to the public.
Following the move, Malaysian authorities have ordered Bybit to shut down its website and mobile apps by December 25. The regulator has also demanded the cessation of promotional efforts aimed at Malaysian investors and the immediate termination of the platform's Telegram support group for users in this country. area
Its decision comes three years after Bybit and Zhou were placed on its investor alert list in July 2021, according to the SC report. This list refers to unregistered persons and entities that Malaysian investors are advised to avoid.
belongs to the regulator Investor warning list It also includes other prominent platforms such as Bitget and atomic wallets that work without registration.
In view of this, the SC has asked investors to deal only with approved RMOs, which undergo rigorous checks to comply with legal and operational standards.
While cryptocurrencies are legal in Malaysia, they are not classified as legal tender. The SC monitors their regulations and imposes strict compliance requirements on operators. According to the SC RecordsOnly six exchanges are licensed to operate in Malaysia.
Bybit's compliance efforts
Social media posts revealed that Bybit had blocked Malaysian users from logging in since December 24 due to regulatory compliance efforts. This exchange announced that it plans to re-enter the market after receiving the necessary permits.
Meanwhile, Bybit's regulatory challenges extend beyond Malaysia. The exchange recently announced that it plans to increase withdrawal and custody services for French users from January 8, 2025 due to the increase. Supervision of the French authorities.
Launched in 2017, Bybit is one of the largest crypto exchanges globally, managing over $16 billion in assets. According to CoinMarketCap data.
