Malaysia Prohibits Bybit Operations
In a series of developments, the Securities Commission of Malaysia (SC) has enforced measures aimed at protecting investors, with cryptocurrency exchange platforms Bybit and Huobi being the main targets.
Bybit, a prominent player in the cryptocurrency market, has halted advertising in Malaysia and disabled its website in compliance with the SC's directives. The exchange has not been explicitly reported as complying with a cease-and-desist order from Malaysia's SC, but recent developments indicate that Bybit is relocating its operations from Singapore to more permissive markets like Hong Kong and Dubai due to Singapore’s stricter regulatory regime introduced in mid-2025.
Similar action was taken against Huobi in May 2023 for operating without registration in Malaysia. Both Bybit and Huobi were found to be dealing as unlicensed entities, posing risks of fraud and money laundering.
The actions taken by the Securities Commission of Malaysia against these platforms are likely in response to concerns about unregistered cryptocurrency exchanges. This move may have a chilling effect on other cryptocurrency exchanges operating without registration in the country.
The summer of 2024 marked a significant period for cryptocurrency regulation in Malaysia, with the tax evasion raids targeting cryptocurrency traders and the actions taken against Huobi and Bybit. The raids highlighted the potential for cryptocurrency trading to be used for tax evasion purposes.
Bybit announced its withdrawal from the French market, halting all services from January 8, 2025, due to changes in local regulations. The timing of Bybit's withdrawal from the French market provides a specific date for the end of its services in that market.
Malaysia, known for its openness towards fintech innovation, notably in the realm of cryptocurrency, is positioning itself as a potential leader in crypto growth in Southeast Asia. The Securities Commission (SC) maintains an investor alert list targeting unauthorized entities involved in unlicensed securities activities, emphasizing the importance of licensing and compliance to protect investors.
Compared to Singapore's increasingly restrictive stance that has driven exchanges like Bybit out, Malaysia appears to be adopting a more facilitative yet cautious regulatory approach. The country treats cryptocurrencies as securities, imposing strict compliance and capital thresholds on crypto firms to operate legally.
In summary, the compliance status of Bybit with any SC Malaysian order is unclear from available data, but its operational shift from Singapore suggests regulatory pressures in the region. The withdrawal of Bybit from the French market suggests that regulatory issues may impact the operations of cryptocurrency exchanges globally. Malaysia is progressing towards a regulated crypto market emphasizing security and innovation, indicating future licensing and compliance requirements will be strictly enforced to protect investors while supporting growth.
- The Securities Commission (SC) of Malaysia's actions against unregistered cryptocurrency exchanges, such as Bybit and Huobi, may have far-reaching implications for the fintech industry, potentially influencing other cryptocurrency platforms to comply with registration requirements in Malaysia.
- The financial implications of these regulatory actions extend beyond Malaysia's borders, as the withdrawal of Bybit from the French market indicates that regulatory issues affecting cryptocurrency exchanges can impact operations worldwide.
