Securities Commission Malaysia has imposed strict enforcement against Bybit and its CEO, Ben Zhou, for operating an unregistered digital asset exchange in the country. Bybit should, hence, cease operations, immediately stop advertising, and terminate the Telegram support groups directed toward Malaysian investors.
SC’s Investor Alert List has included Bybit and Ben Zhou since July 2021. A spate of warnings later, the platform still continued its operations without the required registration.
The SC gave explicit orders, which included the immediate cessation of all advertisements, including all social media postings; closing Bybit’s Malaysian Telegram support group immediately; and blocking access to the website and mobile applications in Malaysia within 14 days of working days from Dec. 11, 2024.
Special instructions have also been given to Ben Zhou so that the letter is complied with accordingly. The SC emphasized that operating a digital asset exchange without registration is against Section 7(1) of the Capital Market and Services Act of 2007.
Bybit violates Malaysian securities laws
It also cited the risks of operating and dealing with unregistered trading platforms and the importance of investor protection. They said investors investing with unlicensed organizations were unprotected from fraud under Malaysian securities laws.
The SC called upon investors to deal only with RMOs that have been subject to stringent regulatory scrutiny. The code of conduct for registered RMOs is crafted to ensure that investor interests are duly protected.
The public should continuously exercise caution regarding suspicious investment schemes. Report all unsolicited calls, emails, and websites promising unrealistically high returns with minimal risk to the SC immediately.
The move is a signal that Malaysia is committed to having a secure and transparent digital asset market, one in full accord with the laws of the land and providing protection against financial hurt to investors.
