Malaysian Regulation News: Bybit Stops Business Amid Regulatory Hurdle

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Malaysian Regulation News: Bybit Stops Business Amid Regulatory Hurdle

Overview:
The Securities Commission (SC) Malaysia has directed cryptocurrency exchange Bybit and its CEO, Ben Zhou, to cease operations in the country, citing non-compliance with the Capital Markets and Services Act 2007. This marks another regulatory setback for Bybit in its global operations.

Table Of Contents
  1. Key Developments in Malaysia
  2. Bybit’s Global Regulatory Challenges
  3. Bybit's Global Expansion Strategy
  4. The Future of Bybit
  5. Also Check:

Key Developments in Malaysia

  1. Non-Compliance with Local Rules
    • Bybit failed to secure approval as a Digital Asset Exchange (DAX) in Malaysia.
    • The SC highlighted this as a serious contravention, posing potential risks to investors.
  2. SC Directives for Bybit
    • Website and App Shutdown: Bybit must close its platforms in Malaysia by 25 December 2024.
    • Promotional Halt: The exchange must end all promotional activities, including its Telegram support group targeting Malaysian users.
    • Login Access Blocked: Malaysian users have been unable to log in since 24 December 2024.

Bybit’s Global Regulatory Challenges

Bybit has faced similar regulatory pressures in other regions:

  • Japan:
    The Financial Services Agency flagged Bybit for operating without registration under the Payment Services Act.
  • France:
    Exited due to evolving MiCA compliance requirements, advising users to close positions and withdraw funds.
  • Other Regions:
    Banned in the United States, Canada, and the United Kingdom, where strict regulatory frameworks are in place.

Bybit’s Global Expansion Strategy

Despite regulatory challenges, Bybit remains focused on expanding into compliant markets:

  • Austria:
    Actively pursuing regulatory approval ahead of MiCA’s implementation in the EU.
  • Kazakhstan:
    Licensed under the Astana Financial Services Authority (AFSA).
  • Türkiye:
    Approved by the Capital Markets Board (CMB), adhering to regional standards.
  • Other Initiatives:
    Continuing to seek licensing opportunities in jurisdictions with favorable regulatory frameworks.

The Future of Bybit

Bybit’s situation in Malaysia highlights the difficulties cryptocurrency exchanges face in navigating global regulations. While Malaysia’s order represents a setback, Bybit’s strategy to secure licenses and focus on compliant regions shows its commitment to adapting to the evolving regulatory landscape.

As Bybit expands in markets like Austria, Kazakhstan, and Türkiye, its efforts to align with global standards underscore its determination to sustain growth despite increasing pressures.

Also Check:

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