Hong Kong Regulator Classifies Bybit as ‘Suspicious’ Crypto Exchange Amid License Application

Hong Kong Regulator Classifies Bybit as ‘Suspicious’ Crypto Exchange Amid License Application

Crypto News – Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has designated cryptocurrency exchange Bybit as a “suspicious” trading platform. This classification comes despite efforts by the company’s local entity, Spark Fintech, to secure a cryptocurrency exchange license earlier this year.

In its recent update, the SFC expanded its list of “suspicious virtual asset trading platforms” to include Bybit, citing concerns over 11 of its investment products. These flagged products include Bybit Futures Contracts, 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, and Bybit Wealth Management.

The SFC emphasized that none of the entities within the Bybit group hold licenses or registration with the SFC for conducting regulated activities in Hong Kong. In response, a spokesperson from Bybit refrained from commenting on specific regulatory inquiries, stating that product availability varies by region to adhere to local compliance requirements, assuring that the flagged products are not accessible in the Hong Kong market.

While Bybit operates through bybit.com under Bybit Fintech Limited, a company based in Seychelles, it’s crucial to note that the Hong Kong-specific platform, bybit.com.hk, is managed by Spark Fintech Limited, an entity incorporated in Hong Kong.

Spark Fintech had initiated the process of obtaining a virtual asset trading platform license from the SFC in January, as indicated by the regulator’s list of applicants. However, the SFC’s recent actions indicate ongoing scrutiny and concerns surrounding Bybit’s operations in Hong Kong.