Malaysia's Securities Regulator Has Reprimanded Binance and Bybit for Running Unregistered Exchanges

The short version: The SC has publicly reprimanded two of the world's largest exchanges for running a digital asset exchange in Malaysia without registration: Binance in July 2021 and Bybit in December 2024 (SC, SC). In May 2026 it reported administrative action against four more DAXs operating without registration (SC).

Binance, July 2021

On 30 July 2021 the SC announced a public reprimand against Binance Holdings Limited (registered in the Cayman Islands), its CEO, and three other Binance entities: Binance Digital Limited (UK), Binance UAB (Lithuania) and Binance Asia Services Pte Ltd (Singapore). Binance had been on the SC's Investor Alert List since July 2020. The four entities were ordered to disable the Binance website and mobile apps in Malaysia within 14 business days from 26 July 2021, stop all marketing to Malaysian investors and restrict Malaysian investors from Binance's Telegram group (SC release).

Bybit, December 2024

On 27 December 2024 the SC said it had reprimanded Bybit Technology Limited (previously Bybit Fintech Limited) and its CEO. Bybit had been on the Investor Alert List since July 2021. It was directed to disable its website and apps in Malaysia within 14 business days from 11 December 2024, stop advertising to Malaysian investors and close its Telegram support group for Malaysians. The SC said Bybit had complied with all of its directives (SC release).

2026: Four More Unregistered Exchanges

With its revised DAX guidelines of 20 May 2026, the SC reported administrative action against four DAXs for operating without registration, and said it had worked with technology companies such as Google to limit unregistered DAXs from promoting their services to Malaysians from 14 April 2026. The release does not name the four (SC release).

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