Malaysia’s Securities Regulator Orders Bybit to Cease Operations
Malaysia’s Securities Commission (SC) has ordered cryptocurrency exchange Bybit to shut down its operations in the country, accusing it of operating an unregistered digital asset exchange (DAX).
The regulator instructed Bybit to deactivate its website, mobile apps, and other digital platforms within 14 business days starting December 11. Additionally, Bybit was told to stop advertising to Malaysian investors and to close its Telegram support group for users in the country.
Bybit’s CEO, Ben Zhou, was specifically tasked with ensuring the company followed these directives. By December 27, the SC confirmed that Bybit had fully complied with the orders.
This announcement comes shortly after Bybit revealed plans to cease operations in France. On December 17, the exchange announced it would halt withdrawal and custody services for French users starting January 8, 2025, citing heightened regulatory scrutiny from French financial authorities.
Securities Regulator Advises Investors to Use Registered Platforms
The Securities Commission (SC) explained that its action against Bybit was prompted by concerns about the platform’s compliance. According to the SC:
“Operating a digital asset exchange (DAX) without being registered as a Recognised Market Operator (RMO) is a serious offense under Section 7(1) of the Capital Markets and Services Act 2007.”
The SC encouraged Malaysians to use only registered DAX platforms. Licensed operators are thoroughly vetted and must follow strict regulations designed to protect investors under Malaysia’s securities laws.
The SC also warned that investing through unlicensed platforms leaves users unprotected by the law, increasing their risk of exposure to fraud and money laundering.
Also Read: https://coincap7.com/former-german-fm-advocates-adding-bitcoin-to-reserves/
Malaysia Tightens Control Over Cryptocurrency Activities
Throughout 2024, the Malaysian government took several steps to crack down on crypto-related crimes. On June 17, Malaysia’s Inland Revenue Board launched “Ops Token,” an operation targeting companies that failed to report their cryptocurrency trading activities. Authorities gathered evidence of tax evasion by examining crypto trading data stored on mobile devices and computers.
Later, on December 23, the Securities Commission (SC) added Atomic Wallet, a Web3 wallet service, to its list of banned financial companies. Similar to Bybit, Atomic Wallet was flagged for operating a digital asset exchange (DAX) without proper registration.
https://www.financemagnates.com/cryptocurrency/bybit-shuts-down-in-malaysia-amid-regulators-order/
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