Hong Kong’s Market Regulator Warns Crypto Traders, as Bybit Comes Under Scrutiny
Hong Kong’s Securities and Futures Commission (SFC) cautioned crypto traders about using cryptocurrency exchange Bybit on March 14, defining 11 Bybit products as suspicious investments while listing the exchange among unlicensed operators.
Bybit has come under the scrutiny of Hong Kong’s SFC in what seems to be the latest public warning and crackdown on unlicensed crypto trading platforms in the country, as revealed by a crypto reporter on X.
The Hong Kong SFC announced today that Bybit, the third largest offshore exchange, has been included in the warning list. Bybit's Hong Kong entity is already applying for license, but its offshore entity is added to warning list, which is rare. https://t.co/byLw21hycS
— Wu Blockchain (@WuBlockchain) March 14, 2024
According to the SFC, since the exchange doesn’t have an operating license, Bybit has been added to SFC’s list of suspicious platforms.
Some of the products flagged by the SFC are leveraged tokens, options, futures contracts, and similar cryptocurrency services.
The commission has decried the lack of authorization for these products, maintaining that investors are susceptible to huge financial risks and potential losses.
The SFC has warned crypto traders of impending losses if unlicensed exchanges stop operations. It also highlighted the possibility of funds misappropriation by these suspicious platforms.
The commission, in its remarks, stated that it would probably be difficult to pursue legal action against organizations that are outside Hong Kong. As such, legal solutions might hit a brick wall.
The SFC stressed the need for investor prudence and reaffirmed its commitment to pursuing enforcement action against illegal activity.
The clampdown on illegal entities and unlicensed
