The Securities Commission of Malaysia (SC) has recently taken enforcement action against the well-known cryptocurrency exchange Bybit and its CEO Ben Zhou due to the platform's violation of operating digital asset trading businesses without legal registration.
SC issued a statement last Friday (December 29) requiring Bybit to completely cease operations of the Bybit website, mobile app, and all other digital platforms in Malaysia within 14 working days starting from December 11.
At the same time, Bybit was ordered to immediately stop all advertising targeting Malaysian investors and dissolve the Telegram group established specifically for local users.
SC states: "This decision is based on concerns about whether the platform complies with local regulatory requirements, while aiming to ensure that investors' rights are protected."
According to Section 7(1) of the Capital Markets and Services Act 2007, operating a digital asset exchange (DAX) without obtaining registration as a Recognised Market Operator (RMO) constitutes an offense.
In fact, as early as July 2021, Bybit and CEO Ben Zhou were included in Malaysia's investor warning list due to similar violations.
Bybit's low-key cooperation, promising a comeback in the future
SC confirms that Bybit is currently cooperating with law enforcement requirements and reminds investors that if they choose to trade cryptocurrency on platforms that are not legally registered, they will not be protected by Malaysian securities laws and will face a higher risk of fraud and financial crime. Currently, there are only 6 legally registered cryptocurrency trading platforms in Malaysia.
Bybit later stated in its Malaysian Telegram channel: "We understand that this will cause inconvenience to everyone, and we look forward to being able to meet you again in the future after obtaining the relevant licenses."
In August this year, due to France tightening the requirements for cryptocurrency operating licenses in anticipation of the EU's Market in Crypto-Assets Regulation (MiCA), Bybit also ceased its operations in France.
"Malaysia takes strong measures! Bybit, not legally registered, ordered to 'cease operations entirely'" This article was first published on (BlockTempo).