Malaysia’s Securities Commission (SC) has taken decisive action against the cryptocurrency exchange Bybit Technology Limited (formerly Bybit Fintech Limited), as well as its CEO, Ben Zhou (Yuchen Zhou), for operating without the necessary registration under Malaysian law.
The SC revealed that Bybit was running a digital asset exchange (DAX) in Malaysia without approval as a Recognized Market Operator (RMO), which is a violation of Section 7(1) of Malaysia’s Capital Markets and Services Act 2007. Bybit and its CEO have been listed on the SC’s Investor Alert List since July 2021.
In response to the violation, the SC has imposed a series of directives on Bybit and Zhou to protect Malaysian investors:
Website and Platform Shutdown: Bybit must deactivate its website, mobile apps, and any other platforms accessible in Malaysia by December 26, 2024 (14 working days from December 11).
Advertising Ban: Bybit is required to halt all advertising and promotional activities targeting Malaysian users, including on social media.
Telegram Group Closure: Bybit must shut down its Malaysian-based Telegram support group.
The SC has assigned Ben Zhou the responsibility of ensuring that these orders are fully implemented.
Why This Matters
The SC stressed that operating without registration exposes investors to significant risks, such as fraud and money laundering. Registered RMOs undergo strict regulatory scrutiny to safeguard investors and maintain market integrity.
“This enforcement action underscores our commitment to safeguarding investors and ensuring a fair and transparent marketplace,” stated the SC.
Bybit has complied with the SC’s orders, but the regulator has urged investors to only engage with platforms that are officially registered with the SC. Investment in unregistered platforms is not protected by Malaysian law and carries heightened risks.
The SC also called on the public to report any suspicious websites or unsolicited investment schemes, particularly those promising high returns with little to no risk.
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