Bybit Ordered to Cease Services in Malaysia

The Securities Commission Malaysia (SC) has ordered Bybit to cease its operations in the country. Bybit, a major cryptocurrency exchange, was flagged by the SC for operating without proper registration in Malaysia. The SC held the CEO, Ben Zhou, responsible for ensuring compliance.

Bybit was added to the SC’s “Investor Alert” list in 2021 for operating as a digital asset exchange without registration. This list also includes other crypto exchanges and brokers regulated outside of Malaysia but not in the country.

Most recently, Atomic Wallet, a cryptocurrency wallet platform, was also added to the list. However, there are also potentially fraudulent platforms listed, including imitation of legitimate platforms.

On December 11, 2024, the Malaysian regulator issued an order to Bybit to disable its website and mobile applications within 14 business days in the country.

Additionally, the Dubai-based exchange was required to stop all online and offline advertisements and terminate the support group for Malaysians on Telegram. According to the regulator, this decision was made due to concerns about Bybit’s compliance with local regulatory requirements and protecting investors’ interests.