Malaysia Prohibits Bybit's Business Activities
In a move to combat tax evasion and ensure regulatory compliance, the Malaysian authorities have launched raids targeting cryptocurrency traders in the summer of 2024. This marks the first known instance of such an action in the country.
The Securities Commission of Malaysia (SC) has accused two prominent cryptocurrency exchanges – Bybit and Huobi – of operating without a license, a violation of the country's regulations. As a result, Bybit has disabled its website and halted advertising in Malaysia, while Huobi has ceased all activities in the country.
However, it's important to note that as of mid-2025, there are no publicly reported specific regulatory actions against Bybit or Huobi in Malaysia. The Malaysian regulatory environment is crypto-friendly but strictly controlled, allowing trading only through licensed Digital Asset Exchanges (DAXs) regulated under the Capital Markets and Services Act. Currently, only three exchanges – Luno, Tokenize, and SINEGY – are licensed, with Bybit and Huobi not among them.
The Malaysian authorities have emphasized the importance of clear licensing, investor protection, and the development of a secure crypto market. Unlicensed platforms, such as Bybit and Huobi, are not recognized and may face enforcement if operating without a license, but no recent regulatory sanctions or enforcement actions specific to them have been documented.
Bybit has also announced its withdrawal from the French market, halting all services from January 8, 2025, due to changes in local regulations. This withdrawal, however, does not affect Bybit's operations in Malaysia. Huobi, on the other hand, has not publicly announced compliance with the SC's order, as of the time of this article.
The Securities Commission of Malaysia has enforced these measures to protect investors and to prevent risks associated with dealing with unlicensed entities, such as money laundering and fraud. Bybit's closure of its Telegram support group for Malaysian users is also in compliance with the SC's order.
While Bybit and Huobi could be subject to future regulatory scrutiny or enforcement if they remain active without licensing, no specific regulatory actions against these exchanges in Malaysia have been publicly reported as of August 2025.
[1] Source: Securities Commission Malaysia (SC) official website and various news outlets.
- Despite the Securities Commission of Malaysia (SC) accusing Bybit and Huobi of operating without a license, no specific regulatory actions against these platforms, as of mid-2025, have been publicly documented.
- Amidst the strict regulatory environment in Malaysia, the finance sector, specifically fintech and cryptocurrency, remains intertwined with politics and general news, as the SC continues to enforce measures for investor protection and market security.
