Malaysia Prohibits Bybit's Operational Activities
In a series of regulatory actions, the Securities Commission of Malaysia (SC) has targeted two major cryptocurrency exchanges, Bybit and Huobi, for operating without registration. This crackdown is part of a broader effort to regulate cryptocurrency activities in Malaysia and protect investors.
The timeline of Bybit's withdrawal from the French market was on January 8, 2025, due to changes in local regulations, a situation similar to the reasons for the SC's action against it in Malaysia. The SEC of Malaysia took a similar action against Huobi in May 2023. Both exchanges were ordered to cease all activities.
Bybit has complied with the order by halting advertising in Malaysia, closing its Telegram support group for Malaysian users, and disabling its website and mobile apps. However, as of the latest information available in August 2025, there is no public record or news of a specific order from the SC demanding Bybit to cease operations within Malaysia.
The SC maintains an Investor Alert List naming unauthorized entities, but Bybit is not explicitly listed there, nor is there indication of enforced cessation of its operations within Malaysia. This suggests that while Bybit has received warnings and regulatory scrutiny, there is no confirmed order from the Malaysian Securities Commission demanding Bybit cease operations.
However, the implications for Malaysian cryptocurrency investors are significant. Without local regulatory approval, Bybit’s operations may not comply with Malaysia’s securities laws, exposing Malaysian investors to regulatory risk, potential loss of legal protections, and fraud risks. If Bybit lacks an official license, Malaysian investors using the platform may not have access to dispute resolution or compensation schemes overseen by the SC.
The SC has the power to blacklist unauthorized entities or take enforcement actions, including blocking access or criminal complaints, though no public action against Bybit is evident yet. Malaysian investors are advised to carefully verify the registration status of crypto platforms and heed warnings from the SC about unauthorized operators to minimize investment risk.
In the broader Southeast Asia context, regulators such as the Philippine SEC have warned against unregistered crypto exchanges including Bybit, labeling them as operating without required licenses and posing risks to investors, which may include total loss of funds and lack of legal recourse. This advisory warns about potential regulatory actions but does not confirm that operations were forcibly ceased in Malaysia.
In conclusion, while Bybit has received warnings and regulatory scrutiny in neighboring countries, there is no confirmed order from the Malaysian Securities Commission demanding Bybit cease operations. Malaysian investors should remain cautious and consider the lack of official licensing and its associated risks when engaging with Bybit or similar platforms.
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