Malaysia Prohibits Bybit's Operations
Bybit and Huobi Ordered to Cease Operations in Malaysia
In a significant move to safeguard investors, the Securities Commission of Malaysia (SC) has ordered cryptocurrency exchanges Bybit and Huobi to cease all activities within the country by December 25. The regulatory body has accused both platforms of operating without a license, posing risks of money laundering and fraud.
The SC's decision aligns with a broader global trend towards tighter regulation and enforcement of cryptocurrency trading platforms. In the United States, regulatory oversight is intensifying, with over 40 states introducing or advancing crypto-related legislation in 2025. The SEC and CFTC have launched initiatives to clarify regulatory frameworks for crypto assets, while state securities regulators actively bring enforcement actions against crypto fraud and noncompliance.
Europe is also seeing similar regulatory pressure, with exchanges like Bitpanda and Crypto.com shifting operations towards regulated zones and preparing to comply with frameworks such as the EU’s Markets in Crypto-Assets regulation (MiCA). There is a marked increase globally in KYC compliance among centralized exchanges, rising to 90% in 2025, led by regulatory scrutiny across regions.
In compliance with the order, Bybit has taken steps to halt operations in Malaysia. The platform has stopped advertising, closed its Telegram support group for Malaysian users, and disabled its website. However, it appears that Huobi has not yet complied with these requests.
The SC's actions follow a series of steps to combat cryptocurrency-related crimes. In the summer of 2024, Malaysia conducted tax evasion raids targeting cryptocurrency traders. The regulatory body has made it clear that it is committed to protecting investors and ensuring a secure environment for digital asset trading.
The order comes at a time when Huobi has already withdrawn from the French market, halting all services from January 8, 2025, due to changes in local regulations. This move indicates the increasing global pressure on cryptocurrency exchanges to comply with local laws and regulations.
As the regulatory landscape for cryptocurrencies continues to evolve, it is essential for platforms to operate within the law to protect investors and maintain trust in the digital asset market. The actions taken by the Securities Commission of Malaysia serve as a reminder of the importance of regulation in ensuring a secure and transparent digital asset trading environment.
- The Securities Commission of Malaysia (SC)'s actions against unlicensed cryptocurrency exchanges Bybit and Huobi highlight the importance of adhering to regulatory standards in the finance and fintech industries.
2.Amidst growing global regulatory pressure, uncompliant cryptocurrency exchanges like Huobi are being forced to withdraw from markets such as France and Malaysia, highlighting the need for fintech companies to prioritize industry compliance.
