The country’s Securities Commission, the SC has officially told the crypto exchange and its CEO, Ben Zhou, to pack it up and cease all operations in Malaysia.
Why? Because Bybit didn’t get the green light to operate as a digital asset exchange under local laws.
No land for crypto exchanges?
The SC isn’t playing around after pointed out that Bybit has been operating without the necessary authorization, which is a big no-no under Malaysia’s Capital Markets and Services Act 2007.
This law requires exchanges to be approved as Recognized Market Operators to legally operate, and the SC flagged Bybit’s non-compliance as a serious issue, raising red flags about potential risks for investors.
To add insult to injury, Malaysian authorities have ordered Bybit to shut down its website and mobile apps.
They’ve also put the brakes on any promotional activities for Malaysian investors and demanded that the platform’s Telegram support group for local users be shut down immediately.
Global struggles
Malaysia isn’t the only place where Bybit is facing challenges. Over in Japan, the Financial Services Agency also warned Bybit, along with KuCoin and Bitget, for operating without proper registration under the Payment Services Act.
And in France? Bybit recently announced its exit due to some pretty strict regulations coming down the pipeline.
In light of these issues, Bybit has already blocked login access for Malaysian users since December 24 as part of their compliance efforts.
But the exchange plans to bounce back and re-enter markets once they secure the necessary licenses.
Expansion plans
Despite these regulatory hurdles, Bybit isn’t throwing in the towel at all. They’re eyeing expansion into Austria and are seeking regulatory approval in anticipation of the upcoming MiCA regulations in Europe.
Plus, they’ve already secured licenses in Kazakhstan and Türkiye, showing they’re serious about playing by the rules while growing their global presence.
It’s still worth noting that Bybit remains unavailable in several key markets, including the U.S., Canada, and the U.K.
It seems they have a long way to go before they can fully spread their wings, as they say.
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