Bybit has suspended its operations in Malaysia following regulatory action by the Securities Commission for operating without proper registration.
The Securities Commission (SC) of Malaysia has taken enforcement action against the Bybit crypto exchange and its CEO, Ben Zhou, for operating in the country without proper registration. The SC has ordered Bybit to suspend its website, mobile apps, and other digital platforms in Malaysia and halt any partnerships in the country. Bybit has 14 business days, starting December 11, to shut down its website.
In July 2021, Bybit and its CEO were added to the SC’s Investor Alert List for being unregistered and not regulated in the country. Bybit, meanwhile, must also disable its website and mobile apps in Malaysia. It is also required to cease circulating advertisements on social media and other channels to Malaysian investors. Furthermore, Bybit must close its Telegram support group for Malaysians. The responsibility lies with Ben Zhou, the CEO of Bybit, to implement orders.
SC Reminds Investors to Avoid Bybit and Other Unlicensed Crypto Platforms
This enforcement action is condition on Bybit’s noncompliance with local regulatory standards. Operating a digital asset exchange (DAX) without being registered as a Recognized Market Operator (RMO) is illegal in Malaysia. This violation is considered an offence under Section 7(1) of the Capital Markets and Services Act 2007. Second, the SC is warning that operating without the proper registration exposes investors to unknown risks.
Up to present, Bybit has complied with the SC’s directives. The commission has reminded investors, to do business only with Recognised Market Operators, registered with the commission. These RMOs are investigated by the regulators strictly in light of Malaysia’s securities laws. Investors who use platforms that are not registered do not enjoy these protections and so remain at risk for fraud and money laundering.
The SC also urged the public to report suspicious websites, unsolicited phone calls, or emails promoting unauthorized investment schemes. Usually, these types of schemes make promises of high returns, with no, or with little, risk to it, which can be dangerous to investors. Bybit left the French market in August following increased regulatory pressure. The trend of imposing regulatory scrutiny on crypto exchanges around the world is reflected in this move.
