Kuala Lumpur, Malaysia – Following its recent move to operate a digital asset exchange without registration, Malaysia’s securities and derivatives markets regulator has recently taken an enforcement action against derivatives trading platform Bybit Technology Limited and its CEO, Ben Zhou (Yuchen Zhou).
As part of this measure, the Securities Commission Malaysia has ordered Bybit to disable the company’s website and mobile applications or any other digital application platform in Malaysia within 14 business days from 11 December 2024.
It has also required said company to stop circulating, publishing, or sending any advertisements immediately, whether in social media posts or otherwise, to Malaysian investors. Bybit was further instructed to close its Telegram support group catering to Malaysians as soon as possible.
Included in this measure, the SC has also specifically mandated Bybit’s CEO Ben Zho to ensure full compliance with the stated directives.
According to SC, the decision was made due to concerns about the platform’s adherence to local regulatory requirements and its commitment to safeguarding investors’ interests.
Said move is taken seriously by the SC, given that the company has operated a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO). This is considered an offence under Section 7(1) of the Capital Markets and Services Act 2007.
With this, the SC has advised investors to invest and deal only with recognised market operators that are officially registered with the SC. These registered RMOs have undergone strict regulatory scrutiny and are required to follow stringent rules to ensure investor protection as outlined by Malaysia’s securities laws.
SC further emphasised that investors who engage with unlicensed or unregistered entities or individuals are not covered by Malaysian securities laws, leaving them vulnerable to risks like fraud and money laundering.
Lastly, the public is urged to notify the SC if they encounter any suspicious websites or receive any unsolicited phone calls or emails offering unauthorised investment schemes, particularly those that promise high returns with little or no risks.
As of now, Bybit has followed all instructions from the SC.
