Hong Kong’s financial watchdog has labeled the cryptocurrency exchange Bybit as “suspicious.” This comes even as Bybit’s local branch, Spark Fintech, has applied for a trading license. On Thursday, the Securities and Futures Commission (SFC) expanded its list of questionable crypto platforms to include Bybit. It also tagged 11 of Bybit’s products as dubious.
These products range from futures contracts to wealth management services. The SFC’s move signals its concern over these offerings reaching Hong Kong investors. It stresses that Bybit isn’t officially recognized to operate regulated activities in the region.
This is crazy – #HongKong has included @BYBIT_OFFICIAL in its roster of ‘suspicious’ #crypto exchanges 😐 pic.twitter.com/PltuCU6SGu
— Paweł Łaskarzewski (@PawelSynapse) March 14, 2024
Bybit Responds Amid Ongoing Review
Bybit, meanwhile, has refrained from commenting on specific products or regulatory matters. The firm asserts that its offerings adjust to meet compliance standards across regions. It assures that the mentioned products aren’t available in the Hong Kong market.
The controversy stems from Bybit.com’s operations, run by a Seychelles-based company. This is separate from bybit.com.hk, handled by Hong Kong’s Spark Fintech Limited. Earlier in January, Spark Fintech approached the SFC, seeking permission to operate as a “virtual asset trading platform.” This application is under review, with the regulatory outcome pending.
The situation puts a spotlight on the intricate regulatory landscape facing crypto exchanges. As Bybit navigates these waters, its quest for legitimacy in Hong Kong continues, marked by regulatory scrutiny and cautious optimism.
