Bybit Technology Limited, formerly Bybit Fintech Limited, and its Chief Executive Officer Ben Zhou (Yuchen Zhou), have been reprimanded by the Securities Commission Malaysia (SC) for running a digital asset exchange (DAX) without registration.
The SC said in a statement that both Bybit and Zhou have been on the regulator’s Investor Alert List since July 2021.
The SC has now directed Bybit to disable its website, mobile applications, or any other digital application platform accessible within Malaysia within 14 business days from December 11, 2024.
It also ordered the company to immediately cease publishing advertisements targeting Malaysian investors and to terminate its Telegram support group for Malaysians.
Zhou has been specifically instructed to ensure Bybit complies with all directives issued by the SC.
These actions follow the SC’s concerns about the platform’s adherence to local regulatory requirements, as well as the need to safeguard investors’ interests.
In its statement, the SC underscored that Malaysia’s regulations aim to protect investors and uphold market integrity, warning that unauthorized platforms pose fraud and security risks.
Operating a DAX without obtaining the SC’s registration as a Recognized Market Operator (RMO) constitutes an offence under Section 7(1) of the Capital Markets and Services Act 2007.
According to the SC, Bybit has complied with all directives to date.
The SC reminded investors to deal only with Recognized Market Operators that are registered with the Commission. Registered RMOs undergo stringent regulatory scrutiny and must abide by strict guidelines to protect investors under Malaysian securities laws.
Investors who engage with unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws and risk exposure to fraud, money laundering, and other potential abuses.
The SC urged the public to alert authorities if they encounter suspicious websites, unsolicited calls, or emails offering unauthorized investment schemes, especially those promising high returns with minimal or no risks.
