The Securities Commission of Malaysia has ordered cryptocurrency exchange Bybit and its chief officer to halt the operation of all digital platforms within the country. This announcement was made on December 27, indicating that Bybit must cease all activities in Malaysia, including advertisements targeting local audiences, by December 11.
The Commission initiated enforcement proceedings against Bybit and its business chief for offering a crypto-selling platform without proper registration. This includes the immediate suspension of Bybit’s website and mobile applications, as well as deactivating its local Telegram support group.
Concerns were raised regarding Bybit’s adherence to regulatory obligations and investor protection. The Securities Commission emphasized that operating a digital asset exchange without its Recognised Market Operator registration constitutes an offence under the Capital Markets and Services Act 2007. Bybit and its chief officer have been previously listed on the Commission’s Investor Alert List due to similar regulatory breaches since July 2021.
In compliance with the enforcement directions, the Securities Commission reiterated that trading on unregistered platforms leaves Malaysian investors unprotected under local securities laws, increasing their vulnerability to financial crimes. Currently, only six cryptocurrency exchanges are registered to operate legally in Malaysia: HATA Digital Sdn Bhd, Luno Malaysia Sdn Bhd, MX Global Sdn Bhd, SINEGY DAX Sdn Bhd, Tokenize Technology Sdn Bhd, and Torum International Sdn Bhd.
Bybit has acknowledged the enforcement action through its local communication channels and expressed hope to re-engage with Malaysian investors in the future once the necessary licenses are secured.
This situation follows Bybit’s recent exit from the French market in August, where stricter licensing requirements were implemented in light of the European Union’s Markets in Crypto-Assets regulations. This trend underscores the increasing regulatory scrutiny facing cryptocurrency exchanges globally.
