The Hong Kong Securities and Futures Commission (SFC) on Thursday added the well-known cryptocurrency exchange Bybit to its list of suspicious virtual asset trading platforms, stating that Bybit Global had been providing trading services to Hong Kong investors without a license. Bybit clarified that its Hong Kong entity had already submitted a license application to the SFC at the end of January.
In its announcement, the SFC warned the public to be cautious of unlicensed virtual asset trading platforms and, for the first time, included Bybit in its list of suspicious virtual asset trading platforms, as well as its list of suspicious investment products related to cryptocurrencies.
The SFC statement pointed out that it had noticed Bybit’s platform offering multiple cryptocurrency products and trading services in various jurisdictions, including Hong Kong. These products include Bybit’s futures contracts, inverse futures contracts, options, leveraged tokens, dual currency investments, dual currency investments 2.0, Bybit Shark Fin Wealth Management, liquidity mining, and ETH 2.0 liquidity staking. The SFC clarified that these cryptocurrency-related products could potentially fall under the definition of “futures contracts” or “securities” as specified in the Securities and Futures Ordinance in Hong Kong. Trading, selling, or promoting these products (whether in Hong Kong or targeting Hong Kong investors) constitutes “regulated activities” and requires a license from the SFC. Engaging in regulated activities without a license is a criminal offense.
The SFC emphasized that anyone who advertises, invites, or publishes documents related to these products without SFC approval and targeting the Hong Kong public would also be committing a crime. Violators of the relevant regulations may be prosecuted and face criminal sanctions upon conviction.
Responding to Bybit’s inclusion in the SFC’s warning list, Bybit clarified to Coindesk that the SFC’s announcement referred to Bybit Global, not Bybit HK, as the two entities are separate companies. Bybit HK has already applied for a license from the SFC through its entity, Spark Fintech Limited, on January 31 this year, as publicly available information from the SFC shows.
According to the SFC’s announcement, a total of 24 cryptocurrency trading platforms submitted license applications before the deadline of February 29. These platforms include well-known international exchanges such as OKX, Bybit, and Crypto.com.
The SFC had previously warned that the transitional period for the Virtual Asset Trading Platform (VATP) licensing regime was coming to an end. All virtual asset service providers in Hong Kong must submit license applications by February 29 this year, or they must cease operations in Hong Kong by May 31.
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