Unregistered Crypto Exchange? Bybit Faces Ban in Malaysia

The regulator stated that Bybit was running a digital asset exchange (DAX) without proper registration, which is against Malaysian law.

Bybit was told to stop advertising to local investors and to shut down its Telegram support group. The SC also directed Bybit to take down its mobile apps, website, and other platforms used to serve Malaysian users.

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These actions had to be completed within 14 business days, starting December 11.

Bybit CEO Ben Zhou was personally tasked with ensuring full compliance with the orders. By December 27, the SC confirmed that the company had met the requirements.

The SC highlighted that registered operators must meet strict standards, including following rules designed to protect investors and ensure a secure trading environment.

In contrast, those who use unregistered platforms face risks such as fraud and money laundering, as they are not protected under Malaysia’s securities laws.

The SC explained that this enforcement action followed concerns about the platform’s lack of compliance. They noted:

The SC views this breach seriously, as operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.

The regulator also emphasized the importance of using licensed DAX platforms and urged Malaysians to use one.

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