The Securities Commission of Malaysia (SC) has sanctioned cryptocurrency exchange Bybit for operating a crypto asset trading platform without proper registration. The SC ordered Bybit to suspend its website and mobile applications in Malaysia, cease advertising activities and close its support group for Malaysians. The decision follows concerns about the platform’s non-compliance with local regulatory requirements and the protection of investors’ interests. Bybit and its CEO Ben Zhou have been on the regulator’s Investor Alert List since July 2021 for the same regulatory violation.
Malaysia sanctions cryptocurrency exchange
The Securities Commission Malaysia (SC) has taken an enforcement action against the Bybit crypto exchange and its CEO Ben Zhou for operating a crypto asset trading platform without proper registration. The regulator announced on Friday that it has ordered Bybit to suspend its website, mobile applications or other digital platforms in Malaysia. The company was given 14 business days to do so from December 11. Bybit was also ordered to cease all advertising activities aimed at Malaysian investors and to terminate its Telegram support group for Malaysians. In a statement from the regulator, the following statements were made:
This decision follows concerns about the platform’s compliance with local regulatory requirements and the protection of investors‘ interests. Operating a DAX without obtaining SC’s registration as a Recognized Market Operator (RMO) is an offense under Section 7(1) of the Capital Markets and Services Act 2007.
The exchange will obtain the appropriate licenses
Bybit and Zhou have been on the regulator’s Investor Alert List since July 2021 for the same regulatory violation. Malaysia’s securities regulator stated that Bybit complied with the enforcement actions as indicated. The SC reminded investors that those who trade crypto on unregistered platforms are not protected under Malaysian securities laws and are at a higher risk of falling victim to financial crimes. There are currently six crypto asset exchanges registered to operate in Malaysia. The company said in a post on the Bybit Malaysia Telegram channel:
We understand that this may cause some inconvenience. We look forward to reconnecting with you in the future, once we obtain the appropriate licenses.
Meanwhile, the Bybit exchange also exited France in August after the country made it harder for crypto companies to obtain operating licenses in preparation for the European Union’s Crypto Asset Markets (MiCA). As we at Kriptokoin.com have reported, it establishes uniform EU market rules for crypto assets. The regulation covers crypto assets that are not currently regulated by existing financial services legislation. The main provisions for issuers and traders of crypto assets cover transparency, disclosure, authorization and supervision of transactions.
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