The Securities and Futures Commission (SFC) of Hong Kong has issued a public warning regarding Bybit, a global cryptocurrency exchange, labeling it as an “unlicensed virtual asset trading platform (VATP).” The SFC expressed concerns about various products offered by Bybit, including futures contracts, options, leveraged tokens, and wealth management services. Notably, the SFC highlighted that no entity within the Bybit group is licensed or registered to conduct regulated activities in Hong Kong, emphasizing that dealing in crypto-related products without proper authorization constitutes a criminal offense. Bybit has been added to the SFC’s list of Suspicious Virtual Asset Trading Platforms and Suspicious Investment Products. Despite Bybit’s application for a VATP license in Hong Kong, concerns persist regarding its compliance with regulatory standards.
The warning issued by the SFC against Bybit serves as a stark reminder of the regulatory scrutiny surrounding crypto exchanges and their offerings. The inclusion of Bybit in the SFC’s alert lists underscores the importance of adhering to licensing requirements and regulatory guidelines to ensure investor protection and market integrity. As the crypto industry continues to evolve, exchanges must prioritize regulatory compliance to mitigate legal risks and foster trust among investors. Bybit’s application for a VATP license indicates a willingness to engage with regulators, but its compliance efforts will be closely monitored moving forward.
