As a seasoned researcher with years of experience in the financial industry, I have seen my fair share of regulatory action against unregistered platforms operating in various markets. In this instance, the Securities Commission (SC) of Malaysia has taken a firm stance against Bybit, a crypto exchange that has been operating without proper registration in the country. This is not an isolated incident – unlicensed exchanges often pop up in different regions, luring unsuspecting investors with promises of high returns and minimal risk.
In my career, I’ve seen the devastating impact such platforms can have on innocent investors who lose their hard-earned money due to a lack of regulation and protection. It is always disheartening to see these situations unfold, but it is crucial that regulators take decisive action to protect investors from fraudulent activities.
The SC’s enforcement action against Bybit serves as a reminder for all investors to do their due diligence before investing in any platform, especially those operating without proper registration or oversight. It is essential to only invest with Recognized Market Operators (RMOs) that are registered with the commission and undergo strict investigation under Malaysia’s securities laws.
In closing, I’d like to leave you with a bit of humor – it seems that Bybit has had its fair share of regulatory trouble across different markets. One might say they should consider changing their name to “By-not” in order to better reflect their compliance history! Always remember, when it comes to investing, be sure to do your homework and avoid platforms like a certain unlucky cat that keeps finding itself in hot water.
Due to regulatory action taken by the Securities Commission, Bybit has temporarily halted its activities in Malaysia as they lack the required registration.
The Malaysian Securities Commission (SC) has initiated legal measures against the crypto exchange Bybit and its CEO, Ben Zhou, due to their unregistered operations within the country. Consequently, the SC has instructed Bybit to halt all activities on their website, mobile applications, and other digital platforms in Malaysia, as well as cease any local partnerships. Bybit has been given a 14-day window, starting from December 11, to close down its Malaysian operations.
In July 2021, Bybit and its CEO were placed on the Securities Commission’s (SC) Investor Alert List due to their unregistered status and lack of regulation in the country. Consequently, Bybit must shut down its website and mobile applications in Malaysia. They are also prohibited from disseminating advertisements to Malaysian investors through social media and other channels. Additionally, they must close their Telegram support group for Malaysian users. The enforcement of these measures is under the responsibility of Ben Zhou, Bybit’s CEO.
SC Reminds Investors to Avoid Bybit and Other Unlicensed Crypto Platforms
The regulatory action against Bybit is due to their failure to adhere to local standards. Running a digital asset exchange (DAX) in Malaysia without being registered as a Recognized Market Operator (RMO) is illegal, according to Section 7(1) of the Capital Markets and Services Act 2007. This infringement is considered an offense. Moreover, the Securities Commission (SC) has issued a warning that operating without proper registration may expose investors to unforeseen risks.
To date, Bybit has adhered to the Securities Commission’s instructions. The commission advises investors to engage in transactions solely with Recognized Market Operators (RMOs) that are registered with the commission. These RMOs undergo rigorous scrutiny by regulators according to Malaysia’s securities laws, ensuring a level of protection against fraud and money laundering for investors who use these officially recognized platforms. Investors utilizing unregistered platforms, however, do not have this protection and continue to face risks in these areas.
The Supreme Court (SC) has encouraged people to flag any questionable websites, unwanted phone calls, or emails advertising illegal investment opportunities. Often, these ventures claim high returns with minimal or no risk, which can be hazardous for investors. The platform Bybit recently withdrew from the French market due to intensifying regulatory pressure. This action mirrors the global trend of stricter regulation towards cryptocurrency exchanges.
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2024-12-30 22:32