Regulatory Warning for Bybit Exchange in Hong Kong
Hong Kong’s Securities & Futures Commission (SFC) issued a warning regarding the unlicensed cryptocurrency exchange, Bybit, on March 14. Bybit offers trading services in crypto-related products in various jurisdictions, but the SFC has stated that no entity in the Bybit group is licensed or registered to conduct any regulated activity in Hong Kong. The SFC is particularly concerned that these products have also been offered to Hong Kong investors. The warning includes 11 products offered by Bybit, such as Bybit Futures, Bybit Options, Bybit Leveraged Tokens, Dual Assets, Bybit Lending, and Bybit Wealth Management.
Cryptocurrency products in Hong Kong may fall under the category of futures contracts or securities, requiring prior licensing with the SFC before being offered to Hong Kong residents. The warning specifically pertains to Bybit.com and its Seychelles-registered owner, Bybit Fintech Limited. It should be noted that this is different from a similar domain, https://www.bybit.com.hk, which is owned by Spark Fintech Limited and does not offer crypto services in Hong Kong.
Bybit had previously made news on February 1 when it was reported that the exchange was seeking a virtual asset trading operator license (VATP) in Hong Kong through its subsidiary, Spark Fintech Limited. Currently, only two crypto exchanges in Hong Kong are licensed by the SFC: OSL exchange, which received its license on December 15, 2020, and HashKey Exchange, which was licensed on November 9, 2022.
The deadline for crypto exchanges operating in Hong Kong to apply for a VATP license expired on February 29. Unlicensed firms must cease operations in Hong Kong by May 31. Exchanges whose VATP applications are rejected by the SFC are required to leave the city within three months.
6 thoughts on “Regulatory Warning for Bybit Exchange in Hong Kong”
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The fact that Bybit hasn’t obtained the necessary licenses in Hong Kong is a red flag. Investors should be wary of engaging with such platforms.
Unlicensed exchanges like Bybit pose a risk to Hong Kong investors. It’s essential for regulators to take swift action to protect the market and its participants.
Bybit’s lack of license raises concerns about the safety of investors’ funds and personal information. I’m grateful to the SFC for bringing this to our attention. 💸🚫🔐
It’s alarming that Bybit has been offering these crypto products to Hong Kong investors without the required licenses. They should be held accountable for operating without proper authorization!
I’m glad the SFC is taking steps to ensure that only licensed exchanges can operate in Hong Kong. Safety and regulation are crucial, especially in the crypto space!
It’s reassuring to know that the SFC is proactive in protecting investors from unlicensed crypto exchanges. This warning shows their commitment to maintaining a safe investment environment.