KUALA LUMPUR (Dec 27): The Securities Commission Malaysia (SC) has ordered Bybit Technology Ltd to disable its website and mobile applications in the country as part of enforcement actions against the cryptocurrency exchange.

Bybit, previously known as Bybit Fintech Ltd, and its chief executive officer Ben Zhou have also been reprimanded for operating a digital asset exchange without registration, the SC said in a statement. Bybit has complied with all of the SC’s directives so far, the SC noted.

“Those who invest in unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws, and are exposed to risks such as fraud and money laundering,” the regulator warned.

ByBit has also been directed to immediately cease circulating, publishing or sending any advertisements, whether in social media posts or otherwise, to Malaysian investors as well as immediately terminate Bybit’s Telegram support group for Malaysians.

The decision comes following concerns about the platform’s compliance with local regulatory requirements and protection of investors’ interests. Both Bybit and Ben Zhou have been included in the SC’s Investor Alert List since July 2021.

“The SC views this breach seriously” as operating a digital asset exchange without registration as a recognised market operator is an offence under Section 7(1) of the Capital Markets and Services Act 2007, the regulator said.

The SC also reminded investors to invest and deal only with recognised market operators as they have undergone strict regulatory scrutiny and are required to adhere to strict guidelines.