Malaysian Regulator Orders Bybit to Halt Operations Over Registration Failures

TL;DR

• Crypto exchange Bybit has been ordered to halt local operations in Malysis over registration failures. 

• Bybit is set to suspend its website, mobile app, and other digital trading platforms in the country.

Bybit Receives Order to Halt Operations in Malaysia

Malaysia’s Securities Commission (SC) announced on Friday that it has ordered Bybit, one of the leading cryptocurrency exchanges in the world, to halt local operations in the country.

The regulator placed an enforcement action against Bybit crypto exchange and its CEO, Ben Zhou, for operating in the country without proper registration. The company was given 14 business days to do so starting from Dec. 11 to suspend its website, mobile applications, or any other digital platforms in Malaysia.

The regulator said,

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The SC views this breach seriously, as operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.”

The Malaysian securities regulator also ordered Bybit to cease all advertising activities to Malaysian investors and discontinue its Telegram support group for Malaysians.

The regulator pointed out that Bybit has complied with the order as directed. It also reminded investors to only trade with registered platforms, as those trading with unregistered platforms are not protected under Malaysian securities laws and are exposed to higher risks of being victims of financial crimes.

This latest development comes as Bybit intensifies efforts to expand its services in Europe and Asia. In October, the company announced plans to obtain regulatory approval in Austria as part of its broader strategy to expand operations across key markets.

In September, Bybit also received a provisional license from Dubai's Virtual Asset Regulatory Authority (VARA), marking a significant step in its global expansion in the crypto sector.