Kuala Lumpur, Malaysia – The Securities Commission Malaysia (SC) has ordered online cryptocurrency exchange Bybit to register as an officially-registered digital asset exchange (DAX) in Malaysia.
According to the SC, Bybit and its CEO Ben Zhou have been included in the SC’s Investor Alert List since July 2021.
Said decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The commission views this breach seriously, as it notes that operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007.
As a result of this, SC has ordered Bybit disable Bybit’s website and mobile applications or any other digital application platform in Malaysia within 14 business days from 11 December 2024.
It has also ordered the platform to immediately cease circulating, publishing or sending any advertisements, whether in social media posts or otherwise, to Malaysian investors; and immediately terminate Bybit’s Telegram support group for Malaysians.
“Investors are reminded to invest and deal only with Recognized Market Operators that are registered with the SC. Registered RMOs have undergone strict regulatory scrutiny and are required to adhere to strict guidelines so that investors are protected under Malaysia’s securities laws,” SC said in a press statement.
They added, “Those who invest in unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws and are thus, exposed to risks such as fraud and money laundering.”
