Bybit shut down in Malaysia over unlicensed operations
Malaysia’s Securities Commission (SC) has ordered crypto exchange Bybit and CEO Ben Zhou to cease operations in the country due to non-compliance with local regulations. Bybit failed to obtain authorization to operate as a digital asset exchange (DAX) under the Capital Markets and Services Act 2007. The SC emphasized the risks posed to investors and mandated Bybit to shut down its website and mobile apps by December 25, 2023, halt promotional activities, and terminate its Telegram support group for Malaysian users. Bybit was placed on the SC's Investor Alert List in July 2021. The SC advises investors to engage only with approved Recognized Market Operators (RMOs). While cryptocurrencies are legal in Malaysia, they are not legal tender, and only six exchanges are licensed. Bybit has blocked access for Malaysian users since December 24, 2023, and plans to re-enter the market once it secures necessary licenses. Additionally, Bybit faces regulatory challenges in France, suspending withdrawal services for French users starting January 8, 2025.
