- Malaysia’s Securities Commission (SC) has ordered Bybit to stop operations in the country
- It is accused of launching an unregistered digital asset exchange (DAX)
- Bybit will also cease operations in France and suggests the withdrawal of funds for French users
Bybit has been forced by Malaysia’s Securities Commission to cease operations in Malaysia for 14 business days from Dec. 11 due to allegations of running an unregistered digital asset exchange. This followed the cessation of operations in France until January 8, 2025, due to tighter regulatory controls in the country.
More About the Ban From Malaysia’s Securities Commission
It’s worth noting that Malaysia’s Inland Revenue Board is working to eliminate money laundering and fraud throughout 2024. In particular, the ‘Ops Token’ operation during which they have subjected all financial companies that operate in the country to scrutiny, as well as tax evasion and other irregularities.
Now it’s down to Bybit, which has been accused of launching an unregistered digital asset exchange, they said:
“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.”
Bybit has been given 14 days from December 11 to halt its operations in the country and shut down all platforms to provide services to Malaysians such as website, mobile apps, or any other digital platforms. In addition, they are required to stop distributing their advertisements to Malaysian investors and discontinue their Telegram support group for Malaysians.
Bybit was also forced to cease its operations in France, in an announcement on December 17, they recommend French users to withdraw their funds.
Conclusion
As the crypto industry grows and it becomes less and less possible to ignore it, regulators are becoming more active, and this is more than predictable.
Bybit has certainly earned its popularity as an advanced and trustworthy platform, but now it will have to make an extra effort to meet all regulatory requirements in order to resume operations.
Be aware and stay tuned.
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