Malaysia, which is cracking down on illegal crypto operations, has issued a notice to Bybit crypto exchange. The Securities Commission Malaysia (SC) has directed Bibit to suspend its services in the country. According to an official SC statement, the Dubai-based exchange is operating its Digital Asset Exchange (DAX) in Malaysia illegally. Governments around the world are increasingly enforcing licensing requirements for crypto exchanges to protect their investors from scams and financial risks.

Bybit complied with the Supreme Court’s directive by deactivating its website and mobile app in Malaysia on December 27. The exchange also stopped distribution of advertisements and social media content promoting its platform and services, the SC said in a statement. Official post.

“This decision follows concerns about the platform’s compliance with local regulatory requirements and the protection of investors’ interests. SC views this violation seriously, as SC’s registration as a Recognized Market Operator (RMO) Running the DAX without acquiring it is an offense under Section 7(1) of the Capital Markets and Services Act, 2007,” the SC noted.

In early December, the SC issued a notice to Bybit, raising concerns about its operations. On December 11, Malaysian authorities gave Bybit 14 days to comply with the new directive to suspend its operations in the country.

So far, Bybit CEO Ben Chow has not commented on the situation. Meanwhile, Malaysian regulators have ensured that the exchange has shut down its Telegram support group in the country.

Malaysian citizens are allowed to buy, hold and trade cryptocurrencies. According to a report of Freeman Lawmost digital currencies in Malaysia are viewed and regulated as securities under the supervision of the SC. No cryptocurrency is recognized as legal tender in Malaysia.

In June this year, Malaysia’s federal agency Inland Revenue Board (IRB) reportedly raided several locations and identified firms that were not reporting their crypto-related activities.

In its update on Bybit’s service suspension, the SC reminded investors to engage only with Recognized Market Operators (RMOs) registered with the commission. These registered entities are required to follow strict guidelines designed to ensure consumer protection.

“Those who invest in unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws and are thus exposed to risks such as fraud and money laundering,” the SC noted.