Bybit shut down in Malaysia over unlicensed operations

Malaysia’s Securities Commission (SC) has directed crypto speech Bybit and its CEO Ben Zhou to cease each operations wrong the country.

In a caller property statement, the fiscal regulator explained that the bid stems from Bybit’s nonaccomplishment to unafraid the authorization to run arsenic a integer plus speech (DAX) nether section regulations.

Regulatory crackdown

The SC expressed interest implicit Bybit’s non-compliance with section laws, emphasizing the value of safeguarding investors.

Under Malaysia’s Capital Markets and Services Act 2007, operating a DAX without obtaining support arsenic a Recognized Market Operator (RMO) is illegal. The SC highlighted the seriousness of this breach and its imaginable risks to the public.

Following this action, the Malaysian authorities person directed Bybit to crook disconnected its website and mobile applications by Dec. 25. The regulator has besides demanded the cessation of promotional efforts aimed astatine Malaysian investors and the contiguous termination of the platform’s Telegram enactment radical for users successful the region.

According to the SC, its determination occurred 3 years aft Bybit and Zhou were placed connected its Investor Alert List successful July 2021. This database highlights unregistered entities and individuals Malaysian investors are advised to avoid.

The regulator’s Investor Alert List besides includes different salient platforms, specified arsenic Bitget and Atomic Wallet, which run without registration.

Considering this, the SC has urged investors to woody lone with approved RMOs, which acquisition rigorous scrutiny to conscionable ineligible and operational standards.

While cryptocurrencies are ineligible successful Malaysia, they are not classified arsenic ineligible tender. The SC oversees their regulation, imposing strict compliance requirements connected operators. According to the SC’s records, lone six exchanges are licensed to run wrong Malaysia.

Bybit’s compliance efforts

Social media posts revealed that Bybit had blocked login entree for Malaysian users since Dec. 24, citing regulatory compliance efforts. The speech announced plans to re-enter the marketplace erstwhile it secures the indispensable licenses.

Meanwhile, Bybit’s regulatory challenges widen beyond Malaysia. The speech precocious announced plans to suspend withdrawal and custody services for French users starting Jan. 8, 2025, owed to accrued oversight from French authorities.

Launched successful 2017, Bybit is 1 of the largest crypto exchanges globally, managing implicit $16 cardinal successful assets, according to CoinMarketCap data.

The station Bybit unopen down successful Malaysia implicit unlicensed operations appeared archetypal connected CryptoSlate.