Hong Kong regulator threatens enforcement action against crypto exchange Bybit

Officials noted that the platform does not have a license to operate in the local market

14.03.2024 - 15:10

239

2 min

What’s new? The Hong Kong Securities and Futures Commission (SFC) has issued a warning against crypto exchange Bybit. Officials added 11 Bybit services to their list of suspicious investment products and also warned that the platform does not have a local license.

The SFC’s warning

What else is known? According to the SCF, Bybit users risk losing their entire investment, while seeking legal recourse will be complicated by the fact that the organization has no connection to Hong Kong.

Officials identified the following Bybit products as problematic: futures and inverse futures contracts, options, leveraged tokens, liquidity mining, liquid ETH 2.0 staking, Web 3.0 staking, lending, Dual Asset, Dual Asset 2.0, and Bybit Shark Fin products, and the Bybit Wealth Management investment management service.

The commission expressed concern that these products were offered to Hong Kong investors and stressed that no entity in the Bybit Group is licensed or registered with the SFC to conduct any regulated activities in the city.

“Last but not least, the SFC will not hesitate to take enforcement action against unlicensed activities where appropriate,” the officials concluded.

In turn, Bybit representatives assured that the listed products are not available on the Hong Kong market. “Bybit maintains a close dialogue with regulators around the world including HK and strives to comply with all applicable regulations,” the company added.

Bybit has previously increased fees on derivatives trading in several countries, including Russia. Bybit was one of the two exchanges that showed the most significant market share growth in 2023.

Author: