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Highlights
- Malaysia enforces strict action against Bybit for operating without proper registration.
- Securities Commission Malaysia emphasizes adherence to Recognized Market Operator (RMO) guidelines.
- Public cautioned against engaging with unregistered digital asset exchanges.
Malaysia's Securities Commission (SC) has intensified its crackdown on unregistered cryptocurrency exchanges, taking enforcement action against Bybit Technology Ltd. and its CEO, Ben Zhou. The regulator announced that the company had been operating a digital asset exchange (DAX) in Malaysia without authorization, violating local securities laws.
Directives and Compliance
The SC issued a directive to Bybit on December 27, requiring the company to disable its website, mobile applications, and other platforms catering to Malaysian users within 14 business days from December 11, 2024. The company was also ordered to cease advertisements targeting Malaysian audiences and close its local Telegram support group. Zhou was personally tasked with ensuring compliance.
The SC confirmed that Bybit has adhered to the enforcement measures outlined in the directive. The regulator reiterated the significance of proper registration for platforms to ensure they operate within the legal framework and protect users from associated risks.
Risks of Unregistered Platforms
Highlighting the dangers of engaging with unauthorized platforms, the SC emphasized that such exchanges pose substantial risks to users, including potential fraud and a lack of regulatory safeguards. The commission stressed that only Recognized Market Operators (RMOs) registered with the SC have undergone rigorous scrutiny and are required to comply with stringent guidelines designed to protect users under Malaysian securities laws.
Public Awareness and Safeguards
The SC urged the public to engage exclusively with platforms registered as RMOs to ensure their activities fall within the bounds of regulatory oversight. It also encouraged reporting of any suspicious websites or unauthorized schemes, reinforcing its commitment to preserving the integrity of Malaysia’s financial markets.
This enforcement action against Bybit underscores Malaysia’s stringent stance on unregistered crypto exchanges and its dedication to creating a safer digital asset trading environment. By maintaining strict regulatory standards, the SC aims to mitigate risks and enhance the overall security of its financial ecosystem.
