Malaysia’s Securities Commission (SC) has ordered the cryptocurrency exchange Bybit to cease all operations in the country, citing the platform’s lack of a proper license. Bybit was given a deadline of December 25 to comply with the mandate, which included shutting down its website and mobile apps, halting advertisements, and closing its Telegram support group for Malaysian users.
Regulatory Push to Protect Investors
The SC stated that the ban is part of its broader mission to protect investors from the risks associated with unregulated platforms. These risks include money laundering, fraud, and financial instability. Bybit’s compliance with the order reflects growing global scrutiny of cryptocurrency exchanges operating without proper authorization.
This is not an isolated case for Bybit. The exchange recently announced it will discontinue all services in France starting January 8, 2025, following changes in local regulations. The decision underscores the increasing regulatory hurdles faced by crypto platforms worldwide.
A Global Crackdown
Malaysia has been active in regulating cryptocurrency activities. In May 2023, the SC enforced similar measures against Huobi for operating without registration. Additionally, the country conducted tax raids targeting crypto traders in the summer of 2024. These actions indicate that Malaysia is taking a firm stance on ensuring compliance and investor protection within its jurisdiction.
What Does This Mean for Investors?
Bybit’s retreat from Malaysia and France may signify broader challenges for unregulated crypto exchanges globally. For investors, this raises questions about the stability and reliability of platforms that face regulatory scrutiny. While the short-term impact may create volatility in certain trading pairs or platforms, it could also shift users to more compliant and licensed exchanges, potentially stabilizing the market over time.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please conduct your own research before making investment decisions.
