- The Hong Kong Securities and Futures Commission’s classification of Bybit as a “suspicious” crypto trading platform highlights the growing regulatory scrutiny faced by cryptocurrency exchanges.
- Despite Spark Fintech, Bybit’s local business, applying for a crypto exchange license, the SFC’s concerns indicate challenges in meeting regulatory standards and compliance requirements.
Even though Spark Fintech, the company’s local business, applied for a crypto exchange license earlier this year, Hong Kong’s financial regulator labeled cryptocurrency exchange Bybit as a “suspicious” crypto trading platform.
Bybit was added to the Hong Kong Securities and Futures Commission’s list of “suspicious virtual asset trading platforms” on Thursday. Eleven products sold by Bybit were also flagged as suspicious by the SFC.
According to the SFC’s website, the following investment products are considered “suspicious”: Bybit Futures Contracts and Inverse Futures Contracts, Bybit Options, Bybit Leveraged Tokens, Dual Asset, Dual Asset 2.0, Bybit Shark Fin, Liquidity Mining, ETH 2.0 Liquid Staking, Bybit Web3 Staking, Bybit Lending, and Bybit Wealth Management.
“No entity in the Bybit group is licensed by or registered with the SFC to conduct any “regulated activity” in Hong Kong,” the SFC stated in a statement. “The SFC is concerned that these products have also been offered to Hong Kong investors.”
Ongoing evaluation of licenses
The regulator observed that bybit.com, run by Bybit Fintech Limited, a Seychelles-based business, was involved in the aforementioned activities. That is not the same as the other website, bybit.com.hk, which is run by Spark Fintech Limited, a Bybit company that was established in Hong Kong.
According to the regulator’s list of applicants, Spark Fintech filed its license application with the SFC in January to operate as a “virtual asset trading platform.”
Bybit is a cryptocurrency centralized exchange (CEX) that provides experienced traders of all skill levels with a top-notch platform that includes a lightning-fast matching engine, first-rate customer care, and multilingual community support.
Since its founding in March 2018, Bybit has provided access to over 100 assets and contracts spanning Spot and cryptocurrency derivatives, including Futures and Options, as well as launchpad projects, earn products, an NFT Marketplace, and more, to more than 10 million users and institutions. Oracle Red Bull Racing, the Formula One racing team, NAVI, Astralis, Alliance, Virtus.pro, Made in Brazil (MIBR), City Esports, Oracle Red Bull Racing Esports, and the association football (soccer) teams Borussia Dortmund and Avispa Fukuoka are all proud partners of Bybit.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
