TLDR
- Bybit and Ben Zhou were removed from Malaysia’s Investor Alert List.
- The SC had listed Bybit and Zhou in July 2021.
- Bybit complied with Malaysia’s 2024 enforcement directives.
- Zhou said any return needs proper Malaysian approvals.
- Bybit recently led an investment in licensed Malaysian platform Hata.
Bybit CEO Ben Zhou says Malaysia’s Securities Commission removed Bybit from its Investor Alert List. The move followed talks with the regulator and steps linked to local rules.
The exchange and Zhou had been listed since July 2021. The SC said Bybit operated a digital asset platform without proper registration.
Bybit Removed From Malaysia Alert List
Zhou said the removal followed “proactive and constructive” talks with the Securities Commission Malaysia. He said Bybit addressed concerns over investor protection and unlicensed services.
The regulator had reprimanded Bybit in December 2024. It ordered the exchange to block its website and apps in Malaysia.
Bybit also had to stop local ads and close its Malaysia-focused Telegram support group. Zhou said the company complied with those steps.
However, the move does not mean Bybit can restart services in Malaysia. Zhou said any return would need the right approvals.
Regulator Keeps RMO Rules in Place
Malaysia requires digital asset exchanges to register as Recognized Market Operators. This rule falls under the Capital Markets and Services Act 2007.
The SC says unregistered platforms may expose users to fraud and loss of legal recourse. It also says such firms do not offer local investor protection.
Only approved exchanges may serve Malaysian customers. Licensed names include Luno, MX Global, and other approved market operators.
The SC said Bybit has complied with its earlier directives. Still, the legal requirement for registration remains unchanged.
Bybit Links Local Strategy to Hata Investment
Zhou also pointed to Bybit’s lead investment in Hata. Hata is a Malaysia-based crypto platform with local licenses.
He described regulated local infrastructure as important for user trust. He also called Malaysia a key market for regional crypto adoption.
The move shows Bybit’s focus on regulated partners in Southeast Asia. It also comes as global crypto firms face tighter local rules.
Bybit’s removal from the alert list eases one regulatory concern in Malaysia. Yet the exchange still needs approval before serving users there again.
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