Malaysia Prohibits Bybit's Operations
In a series of regulatory actions, cryptocurrency exchanges Bybit and Huobi have faced scrutiny in multiple countries, including France, the Philippines, and Malaysia.
France
Bybit announced it would stop offering withdrawal and custody services to French users starting January 8, 2025, due to increasing regulatory restrictions imposed by French authorities. Users are required to withdraw funds before that deadline, or their unclaimed funds will be transferred to Coinhouse, a licensed French crypto custodian. This move reflects the broader tightening of crypto regulations in France, which has also led to other exchanges like Binance and Coinbase withdrawing from the market.
The Philippines
The Securities and Exchange Commission (SEC) issued advisories in August 2025, warning multiple international exchanges—including Bybit, OKX, Kraken, and others—for operating without the necessary licenses. Bybit was specifically named in government warnings for non-compliance and operating without proper registration.
Malaysia
Although the latest search results do not explicitly mention Bybit facing regulatory actions in Malaysia, the cryptocurrency sector in Malaysia has generally seen regulatory scrutiny, as Malaysia’s Securities Commission actively regulates digital asset exchanges. The Securities Commission of Malaysia (SC) has accused Bybit of operating without a license and has enforced measures to protect investors by ordering Bybit to cease all activities by December 25, 2024. Similarly, Huobi was ordered to cease all activities in Malaysia in May 2023 for operating without registration. However, no specific date has been mentioned for Huobi's withdrawal from the Malaysian market.
Other Jurisdictions
Bybit has also faced global regulatory compliance efforts and market adjustments, including liquidity-based delisting of spot trading pairs and involvement in regulatory settlements.
In summary:
| Country | Regulatory Issue with Bybit/Huobi | Details | |-------------|-------------------------------------------------------------------|------------------------------------------------------------------------------------------------| | France | Ceasing withdrawal & custody services from Jan 2025 | Due to strict local regulations; funds transferred to licensed custodian Coinhouse[4] | | Philippines | Warning for operating without license | SEC advisory against unregistered crypto operators, including Bybit, requiring registration[1][2] | | Malaysia | Ordered to cease all activities by Dec 2024 | Bybit: Accused of operating without a license; Huobi: Ordered to cease all activities in May 2023[3] | | Other | Global regulatory compliance efforts and market adjustments | Includes liquidity-based delisting of spot pairs and involvement in regulatory settlements[5] |
These actions highlight a pattern of heightened regulatory pressure on Bybit and similar global cryptocurrency exchanges across multiple countries, particularly in the Philippines and France, with regulatory attention varying by jurisdiction. Both Bybit and Huobi have complied with the orders by disabling their websites and mobile apps, halting advertising, and closing their Telegram support groups for Malaysian users.
In light of the regulatory pressure, Bybit and Huobi have been forced to adapt their operations in the finance industry, ceasing services in France, Spain, the Philippines, and Malaysia, as a result of non-compliance with local laws. Despite the challenges, the fintech sector continues to evolve, with these exchanges using regulatory settlements and market adjustments to stay compliant in other jurisdictions.
