Securities Commission Malaysia Orders Bybit to Cease Operations in the Country

The Securities Commission Malaysia (SC) has taken action against Bybit Technology Limited, previously known as Bybit Fintech Limited, for operating a digital asset exchange (DAX) in Malaysia without the required registration. Bybit and its CEO, Ben Zhou, have been under scrutiny since being included in the SC's Investor Alert List in July 2021.

In a formal directive issued on 11 December 2024, the SC instructed Bybit to cease its operations in Malaysia, with specific directives to be enforced within 14 business days. These measures include disabling Bybit's website and mobile applications in the country, halting any advertisements directed at Malaysian investors, and terminating the platform's Telegram support group for Malaysian users.

The SC emphasized the importance of regulatory compliance, stating that operating a DAX without the necessary registration as a Recognised Market Operator (RMO) is an offense under Malaysia's Capital Markets and Services Act 2007. As of the latest update, Bybit has complied with the SC's directives.

The SC also issued a reminder to investors about the importance of dealing only with Recognized Market Operators that have been registered with the commission. These RMOs undergo strict regulatory scrutiny, ensuring investor protection in accordance with Malaysia's securities laws.

The SC has urged the public to report any suspicious activities or unauthorized investment schemes to ensure that investors are protected from potential risks such as fraud and money laundering. A total of 19 entities have been added to the SC investor warning list up until December 20, 2024​.