Malaysia Prohibits Bybit's Activities
In a series of regulatory actions, the Securities Commission of Malaysia (SC) has ordered cryptocurrency exchanges Bybit and Huobi to cease all operations within the country. This move comes after both platforms were accused of operating without a license, joining a growing list of unlicensed cryptocurrency entities facing scrutiny.
The SC took action against Bybit in May 2023, with no specific date given for Huobi. Bybit has since complied with the order, disabling its website and halting advertising in Malaysia. It has also closed its Telegram support group for Malaysian users. The status of Huobi's compliance with the SC's orders remains unclear.
Bybit has faced similar regulatory issues in other countries. In the Philippines, the Securities and Exchange Commission (SEC) recently flagged Bybit as one of 10 unlicensed crypto exchanges, warning investors of high risks including loss of funds without legal recourse, fraud, identity theft, and potential money laundering. Bybit announced it would cease services to users in France starting January 2025 due to intensified regulatory pressures from French authorities.
Dealing with unlicensed cryptocurrency exchanges like Bybit in certain jurisdictions carries significant risks. Investors may lose money without any legal support or avenues for dispute resolution. Unregulated platforms may be more susceptible to fraud, identity theft, and market manipulation. They often do not adhere to Anti-Money Laundering and Counter-Terrorism Financing rules, increasing risks of illicit activities. Such platforms may face sudden shutdowns or service restrictions, affecting user access to funds.
Bybit itself acknowledges the evolving regulatory landscape. The company produces reports on regulatory frameworks like the U.S. SEC’s ongoing Project Crypto initiative, which aims to bring clearer licensing and oversight to the digital asset space. This shows the broader industry movement toward compliance, but highlights the risks users face when engaging with exchanges that lack local licenses or regulatory approval.
The Securities Commission of Malaysia (SC) enforced these measures to protect investors and address risks related to money laundering and fraud. In a broader context, these actions underscore the global trend of tightening regulations in the cryptocurrency sector, as governments seek to ensure investor protection and combat illicit activities.
[1] SEC flags 10 unlicensed crypto exchanges in PH, warns of high risks (Philippine Daily Inquirer, 2023) [2] Bybit Faces Regulatory Scrutiny in the Philippines (CoinDesk, 2023) [3] Bybit Reports on U.S. SEC’s Project Crypto (Bybit Blog, 2023) [4] Bybit to Exit France Market Due to Regulatory Pressures (CoinTelegraph, 2023) [5] U.S. SEC’s Project Crypto: Aiming for Clearer Regulation in the Digital Asset Space (Investopedia, 2023)
- The Securities Commission of Malaysia (SC) has taken action in the business realm, enforcing regulations on crypto exchanges like Bybit and Huobi, aiming to prevent unlicensed activities and protect investors from personal-finance risks such as fraud and money laundering.
- In a global financial landscape, regulators like the Securities and Exchange Commission (SEC) of the Philippines are increasing scrutiny on unlicensed cryptocurrency entities, such as Bybit, due to concerns over potential risks to investors, including loss of funds, fraud, identity theft, and market manipulation.
- As the cryptocurrency industry evolves, platforms like Bybit have recognized the importance of compliance and have started investing in understanding complex regulatory structures, such as the U.S. SEC’s Project Crypto, to ensure their operations align with laws and best practices, thereby reducing potential risks for users.
