- Bybit CEO Ben Zhou was ordered by the SC to make sure the business followed all the rules.
- The SC said that it took enforcement action in response to concerns over the platform’s compliance.
Bybit was ordered to stop operations in Malaysia by the Securities Commission (SC) due to allegations that it was operating an unregistered digital asset exchange (DAX).
In a public announcement made on December 11, the Malaysian securities regulator ordered Bybit to take down all digital platforms, including its website and mobile apps, within 14 working days. The exchange was also directed by the regulator to end its Malaysian Telegram support group. And cease advertising to Malaysian investors.
Compliance Crackdown
Moreover, Bybit CEO Ben Zhou was ordered by the SC to make sure the business followed all the rules. On December 27th, the commission verified that Bybit had really done so.
This came after Bybit said it would be pulling out of the French market. The exchange announced on December 17 that it would cease providing withdrawal and custody services to French consumers as of January 8, 2025. The reason given was the heightened regulatory scrutiny from the French financial authorities.
The SC said that it took enforcement action in response to concerns over the platform’s compliance. Malaysians should only transact with DAX platforms that are registered, according to the SC. Under Malaysia’s securities laws, licensed operators are subject to rigorous scrutiny and are required to follow regulations that safeguard investors.
Users put themselves at risk of money laundering and fraud by investing in unauthorized organizations, according to the regulator. Over the course of 2024, the government of Malaysia took a number of steps to crack down on crimes using cryptocurrency.
Companies who failed to disclose their cryptocurrency trading activity to the Malaysian government were the targets of an operation known as “Ops Token” on June 17th. Through crypto trading data saved on mobile devices and computers, the authorities were able to obtain proof of tax evasion.
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