The Hong Kong securities regulator has labelled the crypto platform Bybit an unlicensed virtual asset trading platform (VATP). The regulator has also added Bybit’s products to its alert list of suspicious investment products. The Hong Kong regulator also advised the public to stop patronizing unlicensed entities.
Hong Kong Securities Regulator Issues Warning Against 'Unlicensed' Crypto Platform Bybit
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Regulator Threatens Enforcement Action
The Hong Kong Securities and Futures Commission (SFC) has issued a public warning against the digital asset exchange platform Bybit, referring to it as an “unlicensed virtual asset trading platform (VATP).” In its March 14 statement, the regulator said none of Bybit’s entities are registered or licensed to conduct “regulated activity” in Hong Kong.
The statement enumerates as many as eleven products that Bybit offers illegally to Hong Kong investors. The SFC also warns of the consequences awaiting the crypto platform should it persist in targeting the region’s investors.
“It is also an offence for any person to issue advertisements, invitations or documents relating to these products to the Hong Kong public without the SFC’s authorisation. Any person who contravenes a relevant provision may be prosecuted and, if convicted, subject to criminal sanctions,” the SFC stated.
The regulator further noted that Bybit is now included in its list of suspicious VATPs. Additionally, the platform’s crypto products have been added to the SFC’s alert list of suspicious investment products.
Addressing investors, the Hong Kong regulator advised the public to avoid patronizing unlicensed entities such as Bybit. The SFC also warned investors that they stand to lose their investment should the unlicensed entity cease operations, collapse, or suffer from any misappropriation of assets.
What do you think of the SFC’s designation of Bybit as an unlicensed entity? Share your thoughts in the comments section below.
