Malaysia's Securities Commission orders cryptocurrency exchange Bybit to cease all operations in the country, alleging that the platform has been illegally operating without a license.
Bybit, a digital currency exchange, has been ordered by the Securities Commission of Malaysia (SCM) to halt all operations within the country. The SCM have accused the exchange of operating illegally without the necessary license.
SEC’s Enforcement on Bybit
The Securities Commission of Malaysia has increased its measures against Bybit due to the exchange’s failure to comply with the country’s regulatory requirements. In their public statement, the SCM stated that Bybit is “operating a digital asset exchange (DAX) without being registered by the Securities Commission” and has been illegally targeting Malaysian investors.
The SCM has taken significant steps to curb Bybit’s operations in the country, ordering a halt to all its activities, including its website and mobile app usage in Malaysia. The commission also mandated that Bybit provide a full refund to all Malaysian investors who have accounts with them.
Related: Bybit's Strategic Exit from the French Market: A Deep Dive into Regulatory Pressures
Bybit’s Response to the Order
In response to the directive, Bybit has announced that it is committed to working with regulators and adhering to all necessary compliance procedures to continue its operations. The exchange has also confirmed that it will cooperate with the SCM to resolve these issues and ensure that all affected users are refunded in a timely manner.
While they have agreed to comply with the order, Bybit expressed concern with the commission’s approach, citing the increasing popularity of cryptocurrency and blockchain technology in the country as reasons for a more amicable resolution.
Related: Bybit Secures Provisional Crypto License from Dubai’s Virtual Asset Regulator
Regulatory Actions in Other Countries
Malaysia is not the first country to take regulatory action against Bybit. The crypto exchange has also faced similar issues in other countries. In March, Japan’s Financial Services Agency issued a warning to Bybit, stating that the platform was not registered to operate in the country. Similarly, the UK’s Financial Conduct Authority also banned Bybit in January for operating without a license.
While Bybit is currently headquartered in the British Virgin Islands, it has been looking to relocate its operations to a more crypto-friendly country to avoid these regulatory issues. However, until they find a suitable location, they will have to deal with these compliance matters on a case-by-case basis.
The Future of Crypto Regulation
The regulatory actions taken against Bybit indicate a growing trend among governments around the world to tighten their control over cryptocurrency exchanges. This could be indicative of a future where increased regulation becomes the norm for digital asset exchanges.
Related: Crypto Exchanges Bybit, Bitget, and OKX Implement Geo-Blocking and KYC Procedures
However, it remains to be seen how these regulations will impact the overall cryptocurrency market. While some might view it as a hindrance, others might see it as a necessary step towards legitimizing cryptocurrencies and making them more mainstream.
Conclusion
The cryptocurrency landscape continues to evolve, with regulatory actions playing a significant role in shaping its future. As for Bybit, it will need to navigate these regulatory challenges and ensure compliance to continue its operations. How it responds to these challenges could set a precedent for other exchanges facing similar regulatory issues.
John is a renowned journalist and blockchain enthusiast with over 12 years of experience covering global financial trends and cryptocurrency markets. His sharp insights and ability to break down complex topics make him a cornerstone of finandcrypto.com. Known for his analytical skills, John is passionate about delivering content that empowers the crypto community.
