8 months ago
34 ARTICLE AD
The alert released specifies 11 unlicensed investment products.
Bybit has been marked as a “suspicious” crypto trading platform by Hong Kong’s financial watchdog, in a bid to pursue tighter regulation over its jurisdiction.
The Securities and Futures Commission (SFC) included Bybit in its updated alert list, singling out 11 of the platform’s investment products as questionable. These products range from futures contracts to wealth management services, all of which the SFC states are unlicensed in Hong Kong.
Bybit’s regulatory standing varies across different jurisdictions. In Hong Kong, the Securities and Futures Commission (SFC) has warned the public that Bybit is unlicensed, placing it on the list of suspicious cryptocurrency exchanges and products. For the same set of primary reasons, Bybit is not legal in the USA due to strict regulatory laws, but individuals can access it using a VPN to bypass restrictions. Despite these, media statements from Bybit claim that it actively cooperates with regulators globally, and follows industry best practices to ensure compliance with regulations.
The SFC’s concerns extend to the offerings being available to investors within the region, emphasizing that Bybit’s group entities hold no SFC license for regulated activities in Hong Kong. Bybit, however, maintains that its products comply with regional regulations and are not offered in the Hong Kong market.
“The SFC is concerned that these products have also been offered to Hong Kong investors and wishes to make it clear that no entity in the Bybit group is licensed by or registered with the SFC to conduct any ‘regulated activity’ in Hong Kong,” the regulator said in a statement.
The regulator also affirmed its stance on enforcement actions, claiming that it “will not hesitate” to take action against “unlicensed activities where appropriate.”
The issue arises amid Bybit’s ongoing license application process. Spark Fintech, a Bybit entity in Hong Kong, applied for a virtual asset trading platform license with the SFC in January. This application is under review, and the outcome will determine the firm’s ability to operate legally within the jurisdiction.
Bybit operates globally through bybit.com, run by a Seychelles-based company, separate from the Hong Kong-specific bybit.com.hk managed by Spark Fintech. The distinction between the two entities is crucial as the SFC’s scrutiny intensifies. The exchange recently announced support for Optimism, Base, Arbitrum, and Mantle to prepare for an upgrade, although Bybit only said it would temporarily halt withdrawals on the said networks. Hence, it is unclear whether this pause is related to the Dencun upgrade.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by HAL, our proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
