- Bybit must suspend its platforms in Malaysia after failing to meet regulatory requirements.
- Malaysia’s SC ordered Bybit to stop advertising and close its Telegram support group.
- Bybit faces growing regulatory challenges in multiple markets including Malaysia and France.
Malaysia’s Securities Commission (SC) has taken action against Bybit. The regulator ordered Bybit to suspend its website, mobile apps, and digital platforms in Malaysia. Bybit must comply within 14 business days, starting December 11.
The SC also ordered the company to stop all advertising aimed at Malaysian investors. It must also close its Telegram support group for Malaysian users. The SC raised concerns about its compliance with local regulations and the protection of investors.
Failure to Meet Local Requirements
The SC explained that the company was operating as a digital asset exchange without the required registration. Bybit needed to be registered as a Recognized Market Operator (RMO). The regulator reminded the public that trading on unregistered platforms puts investors at higher risk. The company and its CEO have been on Malaysia’s Investor Alert List since July 2021.
According to the SC, Bybit’s actions violated the Capital Markets and Services Act 2007. This is a serious regulatory issue that has led to enforcement actions.
Regulatory Pressures in Multiple Markets
Currently, only six crypto exchanges are registered to operate in Malaysia. The company must now work to meet these local regulations before resuming operations in the country.
Bybit has also faced regulatory challenges in other countries. In August, the exchange exited France after the country made it harder for crypto firms to obtain licenses. This move was in preparation for the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Bybit is working to address the concerns raised by the regulator. It hopes to re-enter the Malaysian market once it secures the necessary licenses. However, its challenges in both Malaysia and France highlight the growing pressure on crypto exchanges to comply with local laws and regulations.
