The Securities Commission of Malaysia has ordered Bybit and its chief officer to cease operations of all digital platforms in Malaysia and also to stop all advertising targeting Malaysian audiences.
The SC published in its media release that it has initiated enforcement proceedings against Bybit, a cryptocurrency exchange, and its chief executive Ben Zhou for providing a crypto sales platform without sufficient registration on December 27. The platform was discontinued on all digital platforms operating in Malaysia from December 11 within 14 business days. This also includes Bybit’s website and mobile applications. The company must also stop advertising to Malaysian investors and deactivate its local Telegram support group.
The SC raised concerns about Bybit’s compliance with regulatory obligations and investor protection. The regulator said offering a digital asset exchange to businesses without obtaining SC registration as a recognized market operator is an offense under Section 7(1) of the Capital Markets and Services Act 2007. Both Bybit and Zhou have already been added to the SC’s Investor Alert List for similar administrative offenses since July 2021.
Bybit has followed enforcement instructions, SC reiterated. However, Malaysian investors have also been advised that trading on unregistered platforms means they are not protected by Malaysia’s securities laws, making them more vulnerable to financial crimes. There are now only six registered crypto exchanges that can legally operate in Malaysia: HATA Digital Sdn Bhd, Luno Malaysia Sdn Bhd, MX…
