Hong Kong securities watchdog places major crypto exchange Bybit on alert list as local unit seeks licence in the city
- The SFC said Bybit is under scrutiny for offering suspicious virtual-asset products in Hong Kong, where it has no licence to operate
- The regulator pointed out that Spark Fintech, the local unit of Bybit that has applied for a licence, was not involved in offering those products
A number of Bybit’s cryptocurrency investment products have been offered to Hong Kong investors even though no entity within the group is licensed to operate in the city, according to the SFC’s statement on Thursday. It said the exchange was under scrutiny for offering suspicious virtual-asset trading products.
The SFC pointed out that those trading on an unlicensed platform “risk losing their entire investment” if the entity “ceases operation, collapses or otherwise suffers from any misappropriation of assets”.
“Seeking recourse against entities that do not have a nexus with Hong Kong is likely to be difficult and legal remedies may not be available,” the regulator said.
Bybit said it is unable to comment on any specific product or regulatory inquiry, according to an emailed statement to the South China Morning Post on Friday.