Bybit News: Malaysia Orders to Cease Operations Amid Challenges

Bybit Faces Regulatory Challenges: Malaysia Orders Cease Operations

Malaysia’s Securities Commission Orders Bybit to Cease Operations

Malaysia’s Securities Commission (SC) has directed crypto exchange Bybit and its CEO Ben Zhou to cease all operations within the country. This Bybit announcement came after the financial regulator explained that Bybit had failed to secure the necessary authorization to operate as a digital asset exchange (DAX) under local regulations.

The SC expressed concern over Bybit’s non-compliance with Malaysia’s Capital Markets and Services Act 2007, which requires approval as a Recognized Market Operator (RMO) to legally operate a DAX. Bybit’s non-compliance was seen as a serious breach, posing potential risks to investors. Following this action, Malaysian authorities have mandated Bybit to disable its website and mobile applications by December 25. Additionally, the SC has demanded the cessation of promotional efforts aimed at Malaysian investors and the immediate termination of the platform’s Telegram support group for users in the region.

Bybit Faces Global Regulatory Challenges

While Bybit is dealing with regulatory issues in Malaysia, it is not the only region where the Bybit exchange has faced challenges. In Japan, the Financial Services Agency (FSA) issued warnings to Bybit, KuCoin, and Bitget for violating the Payment Services Act by operating without proper registration.

In France, Bybit recently announced its exit due to stringent regulatory developments. Bybit France has instructed users to close all open positions and withdraw their assets ahead of new restrictions, aligning with the upcoming European Union’s Markets in Crypto-Assets (MiCA) regulation framework.

Bybit’s compliance efforts extend to other regions as well. The exchange has blocked login access for Malaysian users since December 24 as part of its regulatory compliance measures. Despite these challenges, Bybit plans to re-enter markets once it secures the necessary licenses.

Bybit's Strategic Expansion

Despite regulatory hurdles, Bybit continues to expand its operations globally. Bybit has announced plans to enter the Austrian market, seeking regulatory approval in anticipation of the MiCA regulation. The Bybit exchange has also secured licenses in Kazakhstan and Türkiye, operating under the Astana Financial Services Authority (AFSA) and the Capital Markets Board (CMB), respectively.

These developments highlight Bybit’s commitment to complying with regulatory standards while expanding its global footprint. However, the exchange remains unavailable in several regions, including the United States, Canada, the United Kingdom, and others.