Bybit has been removed from Malaysia’s Investor Alert List, just as the exchange has reinforced its local strategy through a fresh investment in a regulated exchange.
Summary
- Bybit has been removed from Malaysia’s Investor Alert List after engaging with regulators and aligning its operations with local compliance expectations.
- Founder Ben Zhou said the exchange also led an $8 million funding round in Hata to support regulated infrastructure and build user trust in the market.
- Hata plans to use the funds to improve liquidity and expand its user base.
According to Ben Zhou, the exchange achieved this outcome after “constructive engagement and alignment with local regulatory expectations,” while also leading funding into Hata, a dual-licensed crypto platform operating in the country.
“We believe regulated local infrastructure matters for long-term industry growth and user trust,” said Bybit founder Ben Zhou, describing it as a compliance-first approach that ties directly to user trust and long-term market development.
Details from Bybit and Hata show the exchange led an $8 million Series A round, following its earlier participation in a $4.2 million seed raise, forming a partnership focused on expanding Malaysia’s regulated digital asset market.
Malaysia’s regulatory framework has required platforms to meet strict licensing and investor protection standards before gaining access to users.
“Bybit’s decision to lead this round and partner with us strategically is a strong validation of our belief that crypto should be built the right way, with proper licensing, rigorous compliance, and an unwavering commitment to investor protection,” said Hata CEO David Low.
The collaboration between Bybit and Hata extends beyond funding into operational expansion within Malaysia’s regulated environment. Hata said it plans to deploy the capital to improve platform liquidity, expand its user base through ecosystem and marketing efforts, and build new digital asset products alongside Bybit.
The company also stated it operates under two licenses from the Securities Commission Malaysia and the Labuan Financial Services Authority, positioning itself as the country’s only dual-licensed exchange.
Hata reported that since launching in 2023, it has onboarded more than 209,000 users and processed 1.04 billion Malaysian ringgits, or about $225 million, in transaction volume in 2025.
Zhou has previously described Malaysia as “a strategically important market… with one of the most digitally engaged populations in Southeast Asia and strong long-term potential for digital asset adoption,” linking Bybit’s continued investment to local demand and long-term positioning.
Regulatory developments in Malaysia have accelerated over the past months alongside these corporate moves. Authorities are building infrastructure for tokenized finance and stablecoin use cases.
Malaysia has launched a Digital Asset Innovation Hub as a sandbox for programmable payments, ringgit-backed stablecoins, and supply chain financing under central bank oversight.
Meanwhile, Bank Negara Malaysia has also outlined a three-year roadmap to study tokenized deposits, stablecoins, and cross-border settlement, while confirming that sandbox programs are underway with institutions including Standard Chartered, CIMB Group, and Maybank.
