Malaysia’s Securities Commission (SC) has taken strong action against cryptocurrency exchange Bybit Technology Limited (formerly known as Bybit Fintech Limited) and its CEO, Ben Zhou (Yuchen Zhou), for operating without proper registration.
The SC announced that Bybit has been operating a digital asset exchange (DAX) in Malaysia without obtaining approval as a Recognized Market Operator (RMO), a violation of Section 7(1) of Malaysia’s Capital Markets and Services Act 2007. The company and its CEO have been on the SC’s Investor Alert List since July 2021.
The SC issued a series of directives to Bybit and its CEO to protect Malaysian investors:
- Disable Access: Bybit must shut down its website, mobile apps, and any other digital platforms available in Malaysia by December 26, 2024 (14 working days from December 11).
- Stop Advertising: All advertisements or promotions targeting Malaysians, including those on social media, must cease immediately.
- Close Telegram Group: Bybit must terminate its Malaysian Telegram support group.
Ben Zhou has been personally tasked with ensuring full compliance with these orders.
Why This Matters?
The SC emphasized that unregistered platforms like Bybit pose significant risks, including fraud and money laundering. Registered RMOs undergo rigorous regulatory checks to ensure investor protection and market integrity.
“This enforcement action underscores our commitment to safeguarding investors and maintaining a fair marketplace,” said the SC.
Bybit has already complied with the SC’s directives. However, the regulator reminded investors to only use platforms registered with the SC. Those who invest in unregistered entities are not protected under Malaysian law and face higher risks.
The SC also urged the public to report suspicious websites or unsolicited investment offers, especially schemes promising high returns with little risk.
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