Bybit has ended its operations in Malaysia following an order from the Securities Commission Malaysia (SC). The SC flagged the cryptocurrency exchange giant for operating in the country without local registration and held Bybit’s CEO, Ben Zhou, responsible for ensuring compliance.
Actions against Unregistered Platforms
The order came after the Malaysian regulator added Bybit to its “Investor Alert” list in 2021 for “operating a digital asset exchange (DAX) without registration.”
The list also includes many other crypto exchanges and contracts for differences (CFDs) brokers regulated outside Malaysia but not in the country. Recently, it also added Atomic Wallet, a cryptocurrency wallet platform. However, all these platforms share the list with other potentially fraudulent platforms, including clones of legitimate platforms.
The Malaysian regulator’s latest order, which appears to have been communicated to Bybit on 11 December 2024, directed the exchange to disable its website and mobile applications within 14 business days in the country. Further, the Dubai-headquartered crypto exchange had to cease all online and offline advertisements and terminate the Telegram support group for Malaysians.
“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests.”
Crypto Giants Face Regulatory Challenges
Apart from the actions in Malaysia, the financial services watchdog in Cyprus also added Bybit’s name to its warning list last month for being an unregistered platform. However, the Cypriot regulator has not yet taken any further action.
Bybit is the second-largest centralised cryptocurrency exchange in terms of trading volumes with spot and derivative instruments, according to Coinmarketcap.com. In the last 24 hours, the platform handled over $4.6 billion in spot and $19 billion in derivatives trading volume, trailing only Binance.
The exchange is also strengthening its presence in strategic countries and has gained licences in Kazakhstan and Georgia recently. It also holds a provisional licence in Dubai and is now seeking authorisation in Austria.
“Investors are reminded to invest and deal only with Recognized Market Operators that are registered with the SC,” the regulatory notice noted. “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.”
“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.”
This article was written by Arnab Shome at www.financemagnates.com.
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