From theblock by Danny Park

Malaysia’s Securities Commission (SC) has placed an enforcement action against 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 any other digital platforms in Malaysia. The company was given 14 business days to do so starting from Dec. 11. 

Bybit was also ordered to cease all advertising activities to Malaysian investors and discontinue its Telegram support group for Malaysians.

“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests,” the regulator said in the statement. “Operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007.”

Bybit and Zhou have been included in the regulator’s Investor Alert List since July 2021 for the same regulatory violation.

Malaysia’s securities regulator noted that Bybit has complied with the enforcement actions as directed. The SC reminded investors that those who trade crypto in unregistered platforms are not protected under Malaysian securities laws and are exposed to higher risks of falling victim to financial crimes. There are currently six crypto asset exchanges registered to operate in Malaysia.

“We understand that this may cause some inconvenience,” the company said in a post on the Bybit Malaysia Telegram channel. “Once we have secured the appropriate licenses, we look forward to reconnecting with you again in the future.”

Bybit did not immediately respond to The Block’s request for comment on its future plans in the Southeast Asian country. 

Meanwhile, 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 Markets in Crypto-Assets (MiCA).