Malaysia Prohibits Bybit's Activities
Bybit Remains Under Scrutiny in Malaysia as Cryptocurrency Regulation Tightens
The Securities Commission of Malaysia (SC) has taken action against the cryptocurrency exchange platform Bybit for operating without a license. This is not the first time Bybit has faced regulatory issues; the company announced its withdrawal from the French market, effective from January 8, 2025, due to changes in local regulations.
In response to the SC's order, Bybit has disabled its website and halted advertising in Malaysia. The exchange has also closed its Telegram support group for Malaysian users. Bybit remains on the SC's Investor Alert List, a warning to Malaysian investors not to trade on unregistered platforms like Bybit because trading on such platforms is not protected under Malaysian law.
The SC has been actively enforcing regulations to block unregistered offshore crypto exchanges from operating in Malaysia since around 2021. This enforcement includes ordering platforms such as Binance and Bybit to cease their operations directed at Malaysian users. However, as of 2025, Bybit is still considered unauthorized and continues to be flagged by the SC, indicating that it has not complied fully with the SC’s order to cease operations within Malaysia's jurisdiction.
The implications for cryptocurrency regulation in Malaysia are significant. The SC is emphasizing investor protection by strengthening enforcement against unauthorized crypto platforms. Malaysia is maintaining strict regulatory consistency by actively blocking both domestic and offshore digital exchanges that do not comply with local registration requirements. The SC’s actions reflect a broader effort in Southeast Asia to mitigate risks related to fraud, money laundering, and market instability caused by unregulated crypto trading.
Malaysian regulators stress that trading on unlicensed platforms like Bybit exposes investors to serious risks, including lack of legal recourse and potential financial losses. This tough regulatory stance aligns with global trends, as seen in similar warnings and blocks against Bybit in neighboring countries like the Philippines.
It's worth noting that Huobi, another cryptocurrency exchange, has also been ordered to cease all activities in Malaysia. Huobi, like Bybit, complied with the SC's orders to cease activities in Malaysia. However, the Securities Commission of Malaysia has not issued any statements regarding Huobi's withdrawal from the French market, which is a separate incident.
In conclusion, the Securities Commission of Malaysia is taking a firm stance against unlicensed cryptocurrency exchanges operating within its jurisdiction. Bybit, along with other platforms, has been reprimanded for operating without a license and remains on the Investor Alert List. Investors are urged to be cautious when dealing with unregistered entities in the cryptocurrency market to protect themselves from potential risks and financial losses.
The Securities Commission of Malaysia (SC) has not only taken action against Bybit for operating without a license, but has also initiated measures to regulate the fintech industry, specifically within the realm of cryptocurrency finance. Bybit, still considered unauthorized in Malaysia, continues to face scrutiny and remains on the SC's Investor Alert List.
