Bybit’s CEO, Ben Zhou, says Malaysia’s Securities Commission has removed both Bybit and his name from its Investor Alert List after a lengthy engagement with the regulator. Bybit and Zhou had been on that list since July 2021, following SC findings that the exchange was operating a digital asset platform in Malaysia without proper registration.
Back in December 2024, the SC reprimanded Bybit and ordered it to disable its website and apps in Malaysia, halt all local advertising, and shut down its Malaysia‑focused Telegram support group.
Malaysia’s regulator stresses that any firm running a digital asset exchange without registering as a Recognized Market Operator under the Capital Markets and Services Act 2007 commits an offense, and it says Bybit has since complied with its directives.
ByBit CEO Credits Direct Dialogue With SC
In a new interview and comments picked up by regional crypto media, Zhou says the alert‑list removal came only after “proactive and constructive” talks with the SC. He explains that Bybit addressed the regulator’s concerns about unlicensed operations and investor protection, and he describes the outcome as a sign of greater mutual understanding rather than a signal to resume business as usual.
Zhou also points out that Bybit Exchange complied with all enforcement steps ordered in 2024, including shutting off access for Malaysian users and stopping marketing, which he says helped build credibility in later discussions.
However, he notes that any future return to the Malaysian market would still depend on securing the necessary approvals, as the legal requirement to register as an RMO has not changed.
Malaysia’s Ongoing Stance on Crypto Platforms
Malaysia’s SC repeatedly warns investors that unregistered platforms like Bybit do not offer them protection under local securities laws and expose them to higher risks, including fraud and the loss of recourse. Only a small group of exchanges, such as Luno, MX Global, and several others, currently hold Recognized Market Operator licenses and may legally serve Malaysian customers.
Bybit’s removal from the Investor Alert List does not erase its past enforcement history but may reduce some of the immediate reputational pressure, especially as it partners with licensed firms like Hata Digital, one of Malaysia’s approved exchanges.
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