Monday, January 6, 2025 – The Securities Commission Malaysia (SC) has ordered cryptocurrency exchange Bybit to cease its operations, citing non-compliance with registration requirements. The directive mandates the platform to disable its website and mobile applications in the country and stop all promotional activities targeting Malaysian investors.
Bybit, along with CEO Ben Zhou, has been under scrutiny for operating without proper authorization, a violation of Malaysia’s Capital Markets and Services Act 2007. The SC emphasized that investors dealing with unregistered entities are unprotected under Malaysian securities laws, exposing them to risks such as fraud and money laundering.
The regulator added that Bybit has complied with the issued directives and urged investors to engage only with recognized platforms that adhere to strict guidelines. Currently, Malaysia lists six registered cryptocurrency trading platforms, including Luno and Tokenize Technology.
Bybit has been on Malaysia’s Investor Alert List since 2021, highlighting its unauthorized activities. The enforcement action follows a broader crackdown on illegal cryptocurrency operations in Malaysia, including unregistered exchanges and illicit Bitcoin mining.
This is the latest regulatory action in Malaysia’s effort to combat financial crimes and ensure investor protection in the digital asset sector.
In a similar move, the SC ordered Huobi Global to cease operations last year due to non-compliance.
