Popular crypto exchange Bybit has been forced to shut down its operations in Malaysia.
The Securities Commission Malaysia (SC) took action against Bybit and its CEO, Ben Zhou, citing the exchange’s failure to register as a Recognized Market Operator (RMO).
The SC ordered Bybit to disable its website and mobile applications by 25 December 2024.
Furthermore, the company was asked to cease all promotional activities targeting Malaysian investors and shut down its local Telegram support group immediately.
Explore : Africa Crypto Week in Review: Bybit Expands
Bybit On SC’s Investor Alert List Since July 2021
A Distress Update for Bybit users in Malaysia
Starting from 24th December 2024, Bybit is restricting its Malaysian users from access through their homeland. Below attached with proof. For those who are using Vpn or access from other region, I promise will provide updates soon.… pic.twitter.com/VRLqdkkxIp
— James Ong (@OngJunWei10) December 26, 2024
Under Malaysia’s Capital Markets and Services Act 2007, operating a Digital Asset Exchange (DAX) without proper authorization is illegal.
Bybit had been on the SC’s Investor Alert List since July 2021, a warning to Malaysian investors about unregistered entities.
Despite the warning, the exchange apparently continued its operations in the country without obtaining the necessary license.
However, Bybit’s regulatory troubles in Malaysia are not an isolated incident. The exchange has faced increasing scrutiny in other jurisdictions as well.
France: Bybit announced it would cease withdrawal and custody services for French users starting 8 January 2025. This decision followed intensified oversight from French regulators under the EU’s Markets in Crypto-Assets Regulation (MiCA) framework.
European Economic Area (EEA): Bybit temporarily adjusted its operations in the EEA to align with evolving regulations. The company is actively pursuing a MiCAR license in Austria to resume full operations.
Japan: Japan’s Financial Services Agency has accused the company of non-compliance with local laws, further complicating its efforts to expand in Asia.
Fewer Crypto Exchanges Operate In Malaysia
The SC emphasized that only six exchanges are licensed to operate within Malaysia, urging investors to use approved platforms that meet rigorous compliance standards.
Currently, Luno, MX Global, SINEGY Technologies, and Tokenize Technology, are fully licensed to operate in Malaysia.
While Bybit has stated its intention to re-enter the Malaysian market, it will need to secure the necessary licenses. However, this will require significant investment in compliance infrastructure and engagement with regulators.
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