The Securities and Futures Commission (SFC) in Hong Kong has highlighted Bybit, a cryptocurrencycurrency exchange, as “suspicious,” despite the fact that its local subsidiary, Spark Fintech, had previously applied for a cryptocurrency exchange license.
The SFC added Bybit to its list of suspect virtual asset trading platforms and designated 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.
The SFC notes that no firm within the Bybit group has a license or registration with them to perform any regulated activities in Hong Kong.
Bybit answered that it cannot comment on individual items or regulatory queries, but it can confirm that certain products are not available in the Hong Kong market due to local rules.
On March 14, 2024, Bybit was added to the alert lists for Suspicious Virtual Asset Trading Platforms and Suspicious Investment Products. The SFC cautions investors against engaging with unlicensed firms since recovery may be difficult if problems develop, and legal redress may be limited.
