Malaysia Prohibits Bybit's Activities
Headline: Cryptocurrency Exchanges Bybit and Huobi Cease Operations in Malaysia Due to Regulatory Actions
In a series of regulatory moves, the Securities Commission of Malaysia (SC) has ordered the cessation of operations for two major cryptocurrency exchanges, Bybit and Huobi, in the country. The moves are part of a broader effort by the Malaysian authorities to crack down on unlicensed crypto platforms and protect investors from potential risks.
Both Bybit and Huobi have taken steps to comply with the SC's order. This includes halting advertising in Malaysia, closing their Telegram support groups for Malaysian users, and disabling their websites. Bybit has also announced its withdrawal from the French market, set to take effect from January 8, 2025, due to changes in local regulations.
The SC's actions are a response to allegations that these exchanges have been operating without the necessary licenses, posing risks of fraud, money laundering, and other illegal activities. The Malaysian regulator has been actively enforcing licensing requirements, with past examples including the shutdown of Xpay in 2021 and warnings issued against Bitget in 2024.
Cryptocurrency exchanges and custodians in Malaysia are required to obtain a Recognized Market Operator (RMO) or Digital Asset Exchange (DAX) license. These licenses come with rigorous Anti-Money Laundering (AML), Know Your Customer (KYC), and record-keeping obligations. The regulatory environment remains firm, even as Malaysia introduces some deregulation to foster market competition and Web3 innovation.
The enforcement actions demonstrate the regulator's intolerance of unlicensed operations. In addition to Bybit and Huobi, the SC has taken similar action against other unlicensed crypto trading platforms in the past, such as Huobi in May 2023.
In the summer of 2024, Malaysia also conducted tax evasion raids targeting cryptocurrency traders, further underscoring the country's commitment to enforcing regulations in the crypto space.
In conclusion, the cases of Bybit and Huobi serve as a reminder that operating without a license in Malaysia can lead to cessation orders and other penalties. Investors are advised to only deal with licensed entities to ensure their funds are protected and to mitigate risks associated with unlicensed cryptocurrency exchanges.
[1] Source: https://www.thestar.com.my/business/business-news/2021/09/02/sc-orders-shutdown-of-unlicensed-crypto-exchange-xpay [2] Source: https://www.sc.com.my/media-centre/press-releases/sc-issues-statement-on-deregulation-of-cryptocurrency-exchanges-and-custodians [3] Source: https://www.sc.com.my/media-centre/press-releases/sc-issues-statement-on-deregulation-of-cryptocurrency-exchanges-and-custodians [4] Source: https://www.thestar.com.my/business/business-news/2025/08/01/sc-warns-against-5-more-unlicensed-crypto-trading-platforms [5] Source: https://www.thestar.com.my/business/business-news/2024/10/01/sc-issues-warning-against-bitget-for-operating-without-registration
finance: The Malaysian authorities are enforcing licensing requirements for cryptocurrency exchanges and custodians, focusing on Anti-Money Laundering (AML), Know Your Customer (KYC), and record-keeping obligations.
fintech: Bybit's withdrawal from the French market and the Malaysian regulatory actions against unlicensed crypto exchanges like Bybit and Huobi highlight the importance of compliance in the fintech sector, particularly in the crypto industry.
