Hong Kong regulators ban Bybit

cryptonews.net

March 14, 2024

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Hong Kong's Securities and Exchange Commission (SFC) has announced that trading platform Bybit has been placed on its "warning list". The local branch of the crypto exchange successfully applied for a license, but the offshore company was under threat of closure in the jurisdiction.

The Securities and Futures Commission has warned the public that Bybit is an unlicensed virtual asset trading platform (VATP). It offers services for cryptocurrency products in an illegal manner.

The regulator's claims have been made regarding several functions offered to clients of the offshore trading platform. The agency reminded that in Hong Kong, cryptocurrency-related products may constitute “futures contracts” or “securities” under the SFO, in which case transactions and marketing programs require a license from the SFC.

The following Bybit functions were included in the list of illegal services:

• Bybit Futures Contracts and Inverse Futures Contracts.
• Bybit Options.
• Bybit Leveraged Tokens.
• Bybit Web3 Staking.
• Bybit Lending.
• Liquidity Mining.
• ETH 2.0 Liquid Staking.
• Dual Asset.
• Dual Asset 2.0.
• Bybit Shark Fin.
• Bybit Wealth Management.

It is also an offense to distribute advertisements, invitations or documents about such products. Any person who disregards this provision may be subject to prosecution and criminal sanctions.

The SFC warns users against investing on unlicensed platforms. “Clients may risk losing all of their investments made on such a site. If it goes out of business, goes bankrupt, or is otherwise harmed by any misappropriation of digital assets, there is no way we can protect your capital.”