Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has flagged Bybit, a cryptocurrency exchange, as “suspicious,” despite its local entity, Spark Fintech, applying for a crypto exchange license earlier.
The SFC added Bybit to its list of dubious virtual asset trading platforms and identified 11 of its products as suspicious, including Futures Contracts, Inverse Futures Contracts, Options, Leveraged Tokens, Dual Asset, Dual Asset 2.0, Shark Fin, Liquidity Mining, ETH 2.0 Liquid Staking, Web3 Staking, Lending, and Wealth Management, have caught the attention of the SFC.
The SFC emphasizes that no entity within the Bybit group possesses licensing or registration with them for conducting any regulated activities in Hong Kong.
Bybit responded, stating it cannot comment on specific products or regulatory inquiries but assured that certain products are not available in the Hong Kong market to comply with local regulations.
Bybit was added to the Suspicious Virtual Asset Trading Platforms and Suspicious Investment Products Alert Lists on March 14, 2024. The SFC warns investors against dealing with unlicensed entities, as recovery may be challenging if issues arise, and legal recourse may be limited.
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