Hong Kong's Securities and Derivatives Commission (SFC) has placed 11 services of the Bybit exchange on a suspicious products warning.
The SFC on March 14 issued a public warning about the illegal activities of Bybit exchange in Hong Kong, as this cryptocurrency trading platform is currently not licensed to operate. At the same time, he expressed concern that Bybit had provided products to investors.
The 11 Bybit products included in the warning include, including futures contracts, inverse futures contracts, options, leveraged tokens, Liquidity mining, staking, lending and wealth management.
The warning also names “Bybit Dual Asset,” a short-term trading instrument, and “Bybit Shark Fin,” a guaranteed profit service, as suspect products.
In particular, the SFC emphasized that it may pursue future legal action against Bybit if necessary.
“The SFC will not hesitate to take enforcement action against unlicensed activities where appropriate,” the warning states.
According to data from Coinmarketcap, Bybit is currently the third largest cryptocurrency exchange in the world, with a daily trading volume of more than 7 billion USD as of March 14.
Legal context in Hong Kong
Once mandatory licensing regulations for cryptocurrency exchanges in Hong Kong come into effect, operating and promoting illegal products from June 2023 could lead to criminal charges.
FSC noted that investors may lose assets if exchanges are banned from operating, go bankrupt, or even have their assets appropriated by these entities. Meanwhile, finding support from services without connections in Hong Kong will be extremely difficult.
Previously, the SFC issued a notice, requiring exchanges operating without permission to stop providing services and leave Hong Kong before May 31, when the registration application deadline ended on May 29. /2.
Despite its open approach to becoming a digital asset center and attracting investment, Hong Kong is still considered a region with a strict regulatory framework for the cryptocurrency market. Therefore, the SFC's recent moves will help strengthen investor protection and maintain financial market order.
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