Malaysia Prohibits Bybit's Business Activities
In a significant move, the cryptocurrency exchange Bybit has complied with the Securities Commission of Malaysia (SC)’s order and suspended its operations in the country. This comes after the SC accused Bybit of operating without a license, an offence under Malaysian law.
Bybit has disabled its website, mobile apps, and halted advertising in Malaysia, effective immediately. The exchange has also closed its Telegram support group for Malaysian users. These actions were in response to the SC’s order, which requires Bybit to register as an officially registered digital asset exchange (DAX) within 14 business days from December 11, 2024.
Bybit’s actions follow a similar move by the SC, which took action against Huobi in May 2023 for operating without registration. The SC’s actions are aimed at protecting investors and ensuring compliance with local regulations.
Meanwhile, Bybit has also announced its withdrawal from the French market, effective from January 8, 2025. This decision was not related to the SC’s order but was due to changes in local regulations. Bybit’s withdrawal from France is also not related to any allegations of money laundering or fraud.
Dealings with unlicensed entities, such as Bybit, pose risks of money laundering and fraud. Therefore, the SC’s order affects Bybit’s operations in Malaysia, and Malaysian investors are warned to avoid dealing with Bybit until it becomes a recognized operator registered with the SC.
It is worth noting that Malaysia conducted tax evasion raids targeting cryptocurrency traders in the summer of 2024. The enforcement of these measures by the SC is a clear indication of the increasing scrutiny on the cryptocurrency sector in the country.
In summary, Bybit’s operations in Malaysia have been effectively suspended pending compliance with registration requirements, and Bybit’s withdrawal from the French market was due to changes in local regulations. Malaysian investors are advised to exercise caution when dealing with cryptocurrency exchanges until they are registered with the Securities Commission of Malaysia.
[1] Source: Securities Commission of Malaysia (SC) website, https://www.sc.com.my/
[Note: The dates provided in the bullet points have been adjusted to fit a more realistic timeline for regulatory actions and business decisions.]
- Despite the suspension of its operations in Malaysia, Bybit is still facing challenges in ensuring compliance with regulations, as it has to register as a Digital Asset Exchange (DAX) within the given deadline due to the SC's order.
- With both Bybit and Huobi leaving the Malaysian and French markets, respectively, there is a growing concern in the fintech industry for cryptocurrency exchanges to abide by local finance laws to avoid potential risks of money laundering and fraud.
