March 27, 2024
Hong Kong Warns Against Bybit Exchange
Latest Cryptocurrency News

Hong Kong Warns Against Bybit Exchange

Hong Kong’s Securities & Futures Commission (SFC) has added cryptocurrency exchange Bybit to its warning list as of March 14. “The Securities and Futures Commission (SFC) today warns the public of an unlicensed virtual asset trading platform (VATP) known as Bybit,” the regulator stated, “which offers trading services in crypto-related products in several jurisdictions.”

Source: SFC Official Website

The warning encompasses 11 products offered by Bybit Exchange, including Bybit Futures, Options, Leveraged Tokens, and others. The SFC expressed concern that these products were accessible to Hong Kong investors and stressed that no entity within the Bybit group holds a license or registration with the SFC for regulated activities in Hong Kong.

Cryptocurrency-related products in Hong Kong could be categorized as futures contracts or securities, necessitating SFC licensing before resident offerings. The warning on March 14 pertains to Bybit.com and its Seychelles-based owner Bybit Fintech Limited. This differs from https://www.bybit.com.hk, owned by Spark Fintech Limited, which currently does not offer crypto services in Hong Kong.

On Feb. 1, It has been reported that Bybit is seeking a Virtual Asset Trading Operator License (VATP) in Hong Kong via its subsidiary, Spark Fintech Limited. Only two crypto exchanges in Hong Kong hold SFC licenses: OSL Exchange, licensed on Dec. 15, 2020, and HashKey Exchange, licensed on Nov. 9, 2022.

The deadline for crypto exchanges in Hong Kong to submit a VATP application ended on Feb. 29. Unlicensed firms must cease operations in the Special Administrative Region by May 31. Similarly, exchanges with rejected VATP applications from the SFC must also exit the city within three months.

Image by wirestock on Freepik

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