The Hong Kong Securities and Futures Commission (SFC) announced on Thursday that it has added well-known cryptocurrency exchange Bybit to its list of suspicious virtual asset trading platforms, stating that Bybit Global has provided trading services to Hong Kong investors without a license. Bybit has clarified that Bybit Hong Kong has already submitted a license application to the SFC at the end of January.
The SFC statement mentioned that the organization has noticed that the Bybit platform has provided trading services for various cryptocurrency products in multiple jurisdictions, including Hong Kong. These products include Bybit futures contracts, reverse futures contracts, options, leveraged tokens, dual currency investments, dual currency investments 2.0, Bybit Shark Fin wealth management, liquidity mining, ETH 2.0 liquidity staking, and more. The SFC emphasized that cryptocurrency-related products may constitute “futures contracts” or “securities” as defined in the Securities and Futures Ordinance in Hong Kong. Any trading or promotion of these products (whether in Hong Kong or targeting Hong Kong investors) constitutes a “regulated activity” and requires a license from the SFC. Engaging in regulated activities without a license is a criminal offense.
In response to being included in the SFC’s warning list, Bybit clarified that the announcement by the SFC refers to Bybit Global and not Bybit Hong Kong. The two entities are separate companies, and the latter has already applied for a license from the SFC. Public records from the SFC also show that Bybit, through its Hong Kong entity (Spark Fintech Limited), formally submitted an application for a virtual asset trading platform license on January 31 this year.
According to the SFC’s public records, a total of 24 cryptocurrency trading platforms, including OKX, Bybit, and Crypto.com, have submitted license applications before the deadline of February 29. The SFC previously warned that the one-year transitional period for the Virtual Asset Trading Platform (VASP) licensing regime is coming to an end, and all Hong Kong virtual asset service providers must submit license applications before February 29 this year. Otherwise, they must cease operations in Hong Kong by May 31 this year.
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