The Malaysian government is tightening the activities of cryptocurrency exchanges on its territory. Previously, Huobi Global had also withdrawn from this market.
Bybit exchange ordered to cease operations in Malaysia
On December 27, the Securities Commission of Malaysia (SC) has ordered Bybit to cease operations in the country, after finding that the exchange was not registered (DAX) with the regulatory authority of the nation.
According to the announcement, the SC has required Bybit to disable all online platforms from the website to the mobile application within 14 working days from 11/12.
Bybit was also ordered to cease advertising and close the Telegram support group for Malaysian users. By December 27, the SC confirmed that Bybit had fully complied with these requirements.
The Malaysian SC also has serious warnings for investors. The agency emphasized that operating an illegal exchange is a violation of the 2007 Capital Markets and Services Act. The SC advises investors to only use licensed DAX platforms, as these platforms must comply with strict regulations to protect investor interests, otherwise they will not be protected by Malaysian law, leading to the risk of money laundering and fraud.
The SC's crackdown comes in the context of Bybit recently announcing its withdrawal from the French market, after the country made it difficult for crypto companies to pave the way for the EU's MiCA regulation.
Additionally, on December 23, the SC continued to list the Atomic Wallet crypto wallet in the list of financial companies banned from operating in Malaysia. Sharing the same fate as Bybit, Atomic Wallet was accused of operating an illegal DAX. In the past, the Securities Commission of Malaysia had also "whistled" Huobi Global and even Binance.
The Malaysian government not only closely monitors exchanges but also strengthens measures against cryptocurrency-related criminal activities. On June 17, the Inland Revenue Board of Malaysia carried out the "Ops Token" campaign, cracking down on companies that did not report cryptocurrency trading activities to the tax authorities. Authorities have collected evidence of tax evasion stored on mobile devices and computers. Malaysia has also crushed 985 Bitcoin Mining Rigs to deter the "electricity theft" problem in the local area.
Compiled by Coin68
