Malaysian Authorities Prohibit Bybit's Operations
In a series of regulatory actions, the Securities Commission of Malaysia (SC) has targeted two major cryptocurrency exchanges, Bybit and Huobi, for operating without a license and posing risks of money laundering and fraud.
The SC enforced these measures to protect investors and maintain compliance with evolving regulations. As a result, both Bybit and Huobi have ceased their activities in Malaysia by specified deadlines.
Bybit, a global cryptocurrency exchange, has faced similar challenges in other countries. In France, the exchange announced it would cease withdrawal and custody services starting January 8, 2025, due to rising regulatory pressure from French authorities. The Philippines Securities and Exchange Commission also issued a warning on August 4, 2025, listing Bybit among 10 major international crypto exchanges operating without licenses.
Huobi, another significant player in the cryptocurrency market, has also faced regulatory scrutiny. The exchange was ordered to cease all activities, similar to Bybit, and has halted its services in the French market since January 8, 2025, due to changes in local regulations.
The timeline of events suggests that the SC's actions against Huobi preceded the tax evasion raids conducted by Malaysia in the summer of 2024, indicating a proactive approach to regulating the cryptocurrency market in the country. The withdrawal of both Bybit and Huobi from certain markets, including Malaysia, suggests a global trend of cryptocurrency exchanges complying with changing regulations.
In addition to ceasing operations, Bybit has halted advertising in Malaysia, closed its Telegram support group for Malaysian users, and disabled its website and mobile apps. These actions reflect the growing scrutiny of cryptocurrency activities in Malaysia and the need for exchanges to comply with local regulations.
The SC's actions against Huobi in May 2023 for operating without registration indicate a broader crackdown on unregistered cryptocurrency exchanges in Malaysia. This regulatory pressure is part of a broader trend of increased scrutiny and compliance efforts in the global cryptocurrency market.
These regulatory actions serve as a reminder for cryptocurrency exchanges to prioritise compliance and adhere to local regulations to ensure the protection of investors and maintain the integrity of the market. As regulatory frameworks continue to evolve, it is crucial for exchanges to stay informed and adapt to changing requirements to continue operating legally and safely.
With the gamut of regulations sweeping across the industry, Bybit, having faced repercussions in France and the Philippines, has scaled back its operations in Malaysia after the Securities Commission's (SC) enforcement. Simultaneously, the finance sector's tech-driven wing, fintech, is grappling with altering legislation, as shown by Huobi's cessation of services in the region following SC's actions.
