HongKong SFC Issues Warning Against Crypto Trading Platform Bybit

The Securities and Futures Commission (SFC) of Hong Kong issued an announcement on Thursday (March 14), warning the public to beware of an unlicensed virtual assets trading platform known as Bybit, which provides trading services in crypto-related products in multiple jurisdictions.

The concerned crypto-related products offered by Bybit include:

• Bybit Futures Contracts and 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.

According to the announcement, no entities under the Bybit group are licensed by or registered with the SFC to conduct any "regulated activity" in Hong Kong.

The regulator further explained: "In Hong Kong, crypto-related products may constitute 'futures contracts' or 'securities’ under the SFO and if so, dealing in and/or marketing these products – whether in Hong Kong or targeting Hong Kong investors – constitute a 'regulated activity' and require a licence from the SFC unless an exemption applies. It is a criminal offence to carry out regulated activities without a licence."

Currently, Bybit and its crypto-related products have been included in the SFC's Suspicious Virtual Asset Trading Platforms Alert List and Suspicious Investment Products Alert List, respectively.