ASIC Flags Bitget for Unlicensed Crypto Derivatives

The Australian Securities and Investments Commission (ASIC) has issued a warning against cryptocurrency exchange Bitget, citing concerns over the platform's unlicensed offering of leveraged futures products to Australian users.

While Bitget is registered with AUSTRAC and permitted to operate as a digital currency exchange, ASIC emphasized that the platform lacks the Australian Financial Services (AFS) licence required to offer crypto derivatives. The regulator highlighted the risks associated with Bitget's futures contracts, which feature leverage ratios as high as 125:1 - far above the 2:1 cap imposed locally for such instruments.

"These products can be significantly leveraged, meaning a small amount of capital is required from investors to hold a large position," ASIC stated. "This increases both potential gains and losses."

Bitget, operated by BTG Technology Holdings Limited and related entities, reportedly makes its crypto futures accessible to Australian users via its website and mobile app. ASIC's warning does not confirm whether the company has actively marketed these services within the country.

The exchange, which recently surpassed 100 million users globally and became the second-largest crypto platform by customer base, has previously drawn scrutiny from regulators in at least eight other jurisdictions, including Japan, Germany, and France.