The Securities and Futures Commission (SFC) of Hong Kong is adding crypto exchange Bybit to its list of suspicious virtual trading platforms.
In a new statement, the financial regulator warns investors that Bybit is an unlicensed virtual asset trading platform (VATP).
“The SFC cautions investors against investing with unlicensed entities. Investors may risk losing their entire investment made with an unlicensed entity if it 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 SFC says carrying out regulated activities without a license is a criminal offense in Hong Kong.
“In Hong Kong, crypto-related products may constitute ‘futures contracts’ or ‘securities’ under the SFO and if so, dealing in and/or marketing these products – whether in Hong Kong or targeting Hong Kong investors – constitute a ‘regulated activity’ and require a license from the SFC unless an exemption applies.”
The SFC also added Bybit affiliates, such as ByBit Wealth Management, Bybit Lending, Bybit Shark Fin, Bybit Web3 Staking, Bybit Leveraged Tokens, Bybit Options and Bybit Futures Contracts and Inverse Futures Contracts, to its Suspicious Investment Products Alert List.
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