The Securities Commission Malaysia (SC) has reprimanded Bybit Technology Limited (previously known as Bybit Fintech Limited) (Bybit), and its CEO, Ben Zhou (Yuchen Zhou), for operating a digital asset exchange (DAX) in Malaysia without registration.
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Bybit and Ben Zhou have been included in the SC’s Investor Alert List since July 2021.
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In this regard, the SC has directed Bybit to:
- disable Bybit’s website and mobile applications or any other digital application platform in Malaysia within 14 business days from 11 December 2024;
- immediately cease circulating, publishing or sending any advertisements, whether in social media posts or otherwise, to Malaysian investors; and
- immediately terminate Bybit’s Telegram support group for Malaysians.
Ben Zhou, as the CEO of Bybit, has also been specifically directed to ensure that the above directives are complied.
This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The SC views this breach seriously, as operating a DAX without obtaining the Securities Commission Malaysia’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007.
As of to date, Bybit has complied with all of the SC’s directive.
Investors are reminded to invest and deal only with Recognized Market Operators that are registered with the SC. Registered RMOs have undergone strict regulatory scrutiny and are required to adhere to strict guidelines so that investors are protected under Malaysia’s securities laws.
Those who invest in unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws and are thus, exposed to risks such as fraud and money laundering.
The public should alert the Securities Commission Malaysia if they come across any suspicious websites or receive any unsolicited phone calls or emails offering unauthorised investment schemes, especially those that promise high returns with little or no risks.
About Securities Commission Malaysia (SC)
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.
Our mission is “to promote and maintain fair, efficient, secure and transparent securities and derivatives markets; and facilitate the orderly development of an innovative and competitive capital market”.
The SC has direct responsibility for rule-making, enforcing regulations pertaining to the capital market, ensuring sustainable market growth and development, supervising capital market activities and market institutions including the exchanges, clearing houses and registered market operators, and regulating all entities and persons licensed under the Capital Markets and Services Act 2007. Based on the SCA, the SC reports to the Minister of Finance and our accounts are tabled in Parliament annually.
