Bybit Technology Limited(formerly Bybit Fintech Limited) and its CEO Ben Zhou, has been sued for operating a digital asset exchange (DAX) without registration Securities Commission Malaysia (SC) formal condemnation.
Already included in the investor warning list
The SC said in a statement that May, 2021Since 2013, Bybit and its CEO have been listed Investor Alert List.
This order is a further escalation, reflecting the regulator’s serious concerns about Bybit’s compliance issues.
Complete closure of business within 14 working days
According to the SC order, Bybit must 2024 January 12up Within 14 working daysComplete the following:
- Shut down all its online services in Malaysia, including:
- Official website
- mobile application
- Any other digital platform
- Immediately cease all advertising to Malaysian investors.
- Disbanded its Telegram support group for Malaysian users.
In addition, the SC specifically asked Zhou Yuchen to ensure that Bybit fully complies with these instructions.
Why take regulatory action?
The SC stressed that Malaysia’s regulatory framework is designed to Protecting the rights of investors 并 Maintaining market orderUnauthorized platforms often present serious risks, including:
- Fraudulent behavior
- Fund security risks
Malaysia’s securities laws clearly stipulate that operating a digital asset exchange (DAX) must obtain Recognition by SC and registration as a Recognized Market Operator (RMO).
It is an offence under section 2007(2007) of the Capital Markets and Services Act 7 to operate a DAX without being registered.
Reminder to investors: Choose trading platforms carefully
The SC said that Bybit has complied with its instructions so far. At the same time, the SC once again reminded investors:
When choosing a trading platform, make sure it is registered with the SC Recognized Market OperatorRegistered RMO platforms are subject to strict scrutiny and follow a number of investor protection guidelines to ensure user safety.
If investors choose to cooperate with unregistered or unauthorized platforms, Not protected by Malaysian securities laws, and may face the following risks:
- Fraud and loss of funds
- Money laundering and other criminal activities
- Other potential violations
Public warning: Avoid falling into illegal investment traps
The SC calls on the public to remain vigilant and report the following to the regulator:
- Websites from suspicious or unknown sources
- Unsolicited phone calls or emails
- committed to High returns, low risk Investment plan
Investors should take the initiative to verify the qualifications of trading platforms to avoid being involved in illegal investment activities and protect their personal interests.
Final Thoughts
This action demonstrates the strict regulatory attitude of Malaysian regulators in the field of digital asset trading. Investors need to cooperate with legal and compliant platforms, stay away from potential risks, and help maintain and develop market order.
Original link: https://www.crowdfundinsider.com/2024/12/234679-malaysias-regulator-orders-bybit-to-shut-down-local-operations/