Malaysia Targets Bybit Over Regulatory Noncompliance in Crypto

• Malaysia’s Securities Commission orders Bybit to cease unregistered digital asset operations and advertising within the country.
• Regulatory collaboration is crucial for integrating cryptocurrency into Thailand’s financial and tourism sectors.

The Securities Commission of Malaysia (SC) has issued a forceful condemnation of Bybit Technology Limited and its CEO, Ben Zhou, for operating an unregistered digital asset exchange in Malaysia. This ruling emphasizes the continuous efforts by Malaysian authorities to control the growing crypto market and guard local investors against unapproved operators.

Originally on SC’s Investor Alert List since July 2021, it now receives strict instructions aimed at stopping its operations across the nation. These actions highlight Malaysia’s will to enforce compliance with its rules on capital markets.

Malaysia Enforces Strict Compliance on Bybit’s Operations 

Bybit is mandated by the SC’s enforcement action to deactivate its website, mobile apps, and other digital platforms available inside Malaysia. The exchange is also necessary to instantly stop any ads meant for Malaysian investors, including those shared on social media and other outlets.

Moreover, Bybit has to close the Telegram help groups meant for Malaysian users. These instructions, which have to be followed in 14 working days, put great pressure on the exchange and its CEO to follow local regulatory criteria.

Directly against Malaysia’s Capital Markets and Services Act 2007 is running a digital asset exchange without appropriate registration as a Recognised Market Operator (RMO). These kinds of violations are regarded as major since they compromise the system meant to guarantee market integrity and investor safety.

Investors should only interact with properly registered RMOs under regulatory control, the SC has specifically advised. These organizations have to follow rigorous rules in order to protect investors against fraud and other hazards connected to unregulated platforms.

The SC keeps stressing the need for due diligence among investors while Bybit tries to follow these enforcement policies. Unregistered or unlicensed operators put investors in more danger, including money laundering and fraud.

Particularly those claiming large profits with little or no risk, the regulatory agency has also urged the public to document dubious websites or illegal investment programs.

On the other hand, looking at another country in Asia, CNF previously revealed in Thailand that a former prime minister has suggested using Bitcoin as a transforming tool to boost the travel and business sectors of Phuket.