The Securities Commission Malaysia (SC) has reprimanded Bybit Technology Limited, formerly known as Bybit Fintech Limited, and its CEO, Ben Zhou for operating a digital asset exchange (DAX) in Malaysia without proper registration. Bybit and its CEO have been listed on the SC’s Investor Alert List since July 2021 due to concerns regarding compliance with local regulatory requirements.

In a statement today, the SC announced that it has directed Bybit to disable its website, mobile applications, and any other digital application platforms operating in Malaysia. The company has been given 14 business days from 11 December 2024 to comply.

Additionally, Bybit has been instructed to immediately cease the circulation, publication, or dissemination of any advertisements targeting Malaysian investors, whether through social media or other channels. The SC has also ordered the termination of Bybit’s Telegram support group for Malaysian users. Zhou, as CEO, has been specifically directed to ensure the company adheres to these directives in full.

This decision was made after the SC identified significant risks to investor protection and regulatory compliance. Operating a DAX without obtaining registration as a Recognised Market Operator (RMO) is a serious offence under Section 7(1) of the Capital Markets and Services Act 2007. The SC has stressed that such breaches are taken seriously to ensure the integrity of Malaysia’s financial markets and safeguard investor interests.

As of now, Bybit has complied with all directives issued by the SC. However, the commission reminded investors to only engage with Recognised Market Operators registered with the SC, as these operators are subject to rigorous regulatory scrutiny and must adhere to strict guidelines to ensure investor protection under Malaysian securities laws. Investing with unlicensed or unregistered entities or individuals leaves investors unprotected and exposes them to risks such as fraud and money laundering.

The SC also urged the public to report any suspicious websites, phone calls, or emails promoting unauthorised investment schemes, particularly those that promise high returns with minimal or no risk.

(Source: Securities Commission Malaysia)

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