Bybit Classified as “Suspicious” Crypto Trading Platform by Hong Kong Regulator
Cryptocurrency exchange Bybit has been classified as a “suspicious” crypto trading platform by Hong Kong’s financial regulator, the Securities and Futures Commission (SFC). This classification comes despite the fact that Bybit’s local entity, Spark Fintech, submitted its crypto exchange license application earlier this year.
The SFC updated its list of “suspicious virtual asset trading platforms” on Thursday, adding Bybit to the list. The commission also identified 11 products offered by Bybit as suspicious.
“Suspicious” Investment Products
- 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
- Bybit Wealth Management
The SFC stated that none of the entities within the Bybit group are licensed or registered to conduct any regulated activity in Hong Kong. The commission expressed concern that these suspicious products have been offered to Hong Kong investors.
A spokesperson for Bybit responded to the classification, stating that they are unable to comment on any specific product or regulatory inquiry at this time. They also assured that the listed products are not available in the Hong Kong market.
Ongoing License Review
The SFC noted that the suspicious activities were conducted by bybit.com, which is operated by Bybit Fintech Limited, a Seychelles company. This is separate from the website bybit.com.hk, which is managed by Spark Fintech Limited, a Bybit entity incorporated in Hong Kong.
In January, Spark Fintech submitted its license application to operate as a virtual asset trading platform with the SFC.
Hot Take: Bybit Faces Regulatory Scrutiny in Hong Kong
Cryptocurrency exchange Bybit has been classified as a “suspicious” trading platform by the Hong Kong Securities and Futures Commission (SFC). The SFC has identified 11 products offered by Bybit as suspicious, raising concerns about their availability to Hong Kong investors. While Bybit’s local entity, Spark Fintech, submitted its license application to operate as a virtual asset trading platform earlier this year, the SFC has included Bybit in its list of “suspicious virtual asset trading platforms.” This development highlights the ongoing regulatory scrutiny faced by cryptocurrency exchanges and the need for compliance with local regulations.
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