SFC Places Cryptocurrency Exchange Bybit on Warning List; May Affect HK Market Operations
Summary:
Hong Kong's Securities & Futures Commission (SFC) has put cryptocurrency exchange Bybit on its warning list, citing concerns over an array of products the company offers. No unit of Bybit is registered with the SFC to execute any regulated activity in Hong Kong. The warning specifically refers to Bybit's Seychelles-registered owner. Currently, Bybit is seeking a Virtual Asset Trading Operator license in Hong Kong via its Spark Fintech Limited subsidiary. Unlicensed crypto exchanges have until May 31 to cease operations.
Bybit, a cryptocurrency exchange, has been listed as a cause for concern by the Securities & Futures Commission (SFC) in Hong Kong as of March 14. The SFC made the public aware of an unlicensed virtual asset trading platform (VATP), namely Bybit, offering crypto-related trading facilities in various regions. The SFC's concern revolves around 11 separate products provided by Bybit, which includes Bybit Futures, Bybit Options, Bybit Leveraged Tokens, Dual Assets, Bybit Lending, Bybit Wealth Management, among others. The SFC is particularly worried about these products being made available to investors in Hong Kong and has clarified that no unit in the Bybit group is authorized or registered with the SFC to conduct any "regulated activity" in Hong Kong. As of now, any crypto-related products may be recognised as futures contracts or securities and would require advance licensing from the SFC before they could be offered to residents of Hong Kong. The recent warning issued on March 14 pertains to Bybit.com and its owner Bybit Fintech Limited, registered in Seychelles, which is separate from the similar domain, www.bybit.com.hk, owned by Spark Fintech Limited, currently not providing crypto services in Hong Kong. As reported by Cointelegraph on February 1st, Bybit is actively seeking a VATP license in Hong Kong through its Spark Fintech Limited subsidiary. Only two crypto platforms, including OSL exchange (licensed on Dec 15, 2020) and HashKey Exchange (licensed on Nov 9,2022) hold a licence from the SFC in Hong Kong. The cut-off date for VATP submissions by crypto exchanges operating in Hong Kong was on February 29, with unlicensed firms expected to halt all operation by May 31 in the Special Administrative Region. Similarly, exchanges that have their VATP applications denied by SFC are required to exit the city within a three-month period.
Published At
3/14/2024 6:36:39 PM
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