Key Highlights:
- Forced to disable its platforms in Malaysia, Bybit also halts services in France amid mounting regulatory pressure.
- Malaysia’s regulator urges users to stick to licensed platforms to avoid fraud and money laundering risks.
Paradisers! Is your favorite exchange on the chopping block? Malaysia’s Securities Commission just ordered Bybit to pack its bags, citing regulatory violations, and this crackdown could signal a new era of strict crypto enforcement.
Malaysia’s Latest Crackdown on Bybit
Malaysia’s Securities Commission (SC) has thrown down the gauntlet, directing crypto exchange Bybit to cease all operations in the country. The regulator accused Bybit of operating an unregistered digital asset exchange (DAX), a violation of Malaysia’s strict financial laws.
The SC’s demands were clear: Bybit had 14 business days from Dec. 11 to shut down its website, mobile apps, and any other digital platforms. It also ordered the exchange to halt advertisements targeting Malaysian investors and dissolve its local Telegram support group.
By Dec. 27, Bybit complied fully with the SC’s directives. CEO Ben Zhou was tasked with overseeing the shutdown, marking yet another setback for the exchange. This move comes hot on the heels of Bybit’s withdrawal from France, where it cited “increased regulatory scrutiny” as the reason for halting operations starting Jan. 8, 2025.
Malaysia’s Regulator Urges Caution
Malaysia’s SC has doubled down on its warning to investors, urging them to use only licensed platforms. These licensed operators undergo rigorous vetting to comply with Malaysia’s securities laws, designed to protect users from money laundering and fraud.
In its statement, the SC emphasized the risks of engaging with unlicensed exchanges like Bybit. Without regulatory oversight, investors are left vulnerable and unprotected, raising serious red flags for anyone trading on unapproved platforms.
Malaysia Tightens the Crypto Reins
This isn’t Malaysia’s first rodeo in the crypto crackdown arena. Earlier this year, the Inland Revenue Board launched “Ops Token,” a nationwide operation targeting companies dodging taxes through crypto trading. Officials raided multiple businesses, seizing mobile devices and computers containing evidence of tax evasion.
Most recently, on Dec. 23, the SC banned Atomic Wallet, a Web3 wallet service, from operating in the country for similar reasons as Bybit running an unregistered DAX.
What’s Next for Bybit and Crypto Investors?
Bybit’s regulatory woes are piling up, with Malaysia and France being just the latest in a string of challenges. For crypto investors in Malaysia, the SC’s stance serves as a stern reminder: stick to licensed platforms or face the risks of unregulated trading. We strongly recommend BINGX, MEXC, and KCEX.
