Malaysia’s Securities Commission Enforces Ban on Bybit & Its CEO

The Securities Commission Malaysia (SC) has taken enforcement action against cryptocurrency exchange Bybit Technology Ltd, instructing the platform to disable its website and mobile applications in the country.

Bybit, formerly operating under the name Bybit Fintech Ltd, and its Chief Executive Officer, Ben Zhou, have been formally reprimanded for running a digital asset exchange without proper registration. The SC confirmed that Bybit has complied with the directives issued so far.

Authorities have raised concerns about the risks associated with unregistered digital platforms. The SC emphasised that individuals engaging with unlicensed entities or individuals are not protected under Malaysias securities laws. Such investments expose individuals to significant risks, including potential fraud and money laundering.

The SC‘s measures extend beyond the disabling of Bybit’s digital platforms. The regulator has directed the company to cease all forms of advertising targeting Malaysian investors, including promotions on social media. Bybit has also been instructed to terminate its Telegram support group for Malaysian users.

This regulatory action reflects ongoing concerns about Bybit‘s non-compliance with local laws. Bybit and its CEO have been on the SC’s Investor Alert List since July 2021, signalling sustained scrutiny of the platforms activities.

Operating a digital asset exchange without registration constitutes a violation of Section 7(1) of the Capital Markets and Services Act 2007. The SC has underlined the seriousness of this breach, reaffirming its commitment to protecting investors and ensuring market integrity.

The SC also reminded the public to engage only with recognised market operators. These operators undergo strict regulatory scrutiny and adhere to established guidelines, ensuring higher levels of investor protection.

This latest action by the SC underscores ongoing regulatory efforts to address unlicensed cryptocurrency operations. By enforcing compliance with local laws, the SC aims to protect investors from risks and promote a transparent and secure financial environment.

Malaysian investors are urged to remain cautious and conduct thorough research before engaging with digital asset platforms. Recognised operators provide an added layer of security, having undergone rigorous assessments to meet legal and operational standards.

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