Hong Kong’s Securities and Futures Commission (SFC)
has warned investors about the cryptocurrency exchange Bybit and several of its
offerings. The SFC highlighted Bybit’s lack of licensing,
cautioning investors about the risks of engaging with unlicensed entities. The
regulator has added 11 Bybit products to its list of suspicious investments,
raising concerns about potential risks for investors.
The SFC specifically flagged multiple products offered
by Bybit, including futures contracts, options, leveraged tokens, and various
other crypto-related services. These products have reportedly been marketed to
investors in Hong Kong without proper authorization, potentially exposing them
to significant financial risks.
In Hong Kong, dealing in crypto-related products falls
under regulated activities, requiring entities to obtain proper licensing from
the SFC. The SFC emphasized its commitment to taking enforcement action against
unlicensed activities, stressing the importance of investor caution.
The regulator has flagged the crypto exchange’s products, such as futures contracts, options, tokens, mining, staking, lending, and wealth management.
The SFC mentioned: “Investors may risk losing
their entire investment made with an unlicensed entity if it ceases operation,
collapses or otherwise suffers from any misappropriation of assets. Seeking recourse against entities that do not
have a nexus with Hong Kong is likely to be difficult and legal remedies may
not be available.”
The Hong Kong SFC announced today that Bybit, the third largest offshore exchange, has been included in the warning list. Bybit’s Hong Kong entity is already applying for license, but its offshore entity is added to warning list, which is rare. https://t.co/byLw21hycS
— Wu Blockchain (@WuBlockchain) March 14, 2024
Expect ongoing updates as this story evolves.
Hong Kong’s Securities and Futures Commission (SFC)
has warned investors about the cryptocurrency exchange Bybit and several of its
offerings. The SFC highlighted Bybit’s lack of licensing,
cautioning investors about the risks of engaging with unlicensed entities. The
regulator has added 11 Bybit products to its list of suspicious investments,
raising concerns about potential risks for investors.
The SFC specifically flagged multiple products offered
by Bybit, including futures contracts, options, leveraged tokens, and various
other crypto-related services. These products have reportedly been marketed to
investors in Hong…
