On March 14, the Securities and Futures Commission (SFC) of Hong Kong took action against cryptocurrency exchange Bybit, placing it on its warning list. In a statement, the SFC cautioned the public regarding an unlicensed virtual asset trading platform known as Bybit, expressing concern over its provision of trading services for crypto-related products across various jurisdictions.
The warning issued by the SFC encompassed 11 products offered by Bybit, including Bybit futures, Bybit options, Bybit leveraged tokens, and others. The commission emphasized that these products, while available to investors in multiple locations, had also been accessible to individuals in Hong Kong. However, it stressed that no entity within the Bybit Group holds a license or registration with the SFC to conduct regulated activities in Hong Kong.
In Hong Kong, cryptocurrency-related products may fall under the category of futures contracts or securities, necessitating prior approval from the SFC before being offered to residents. The SFC's warning specifically pertains to the website bybit.com and its operator Bybit Fintech Limited, registered in the Seychelles. This entity is distinct from bybit.com.hk, a similar domain owned by Spark Fintech Limited, which is not currently operating in Hong Kong.
Reports from February 1 indicated that Bybit had initiated efforts to obtain a virtual asset transaction operator (VATP) license in Hong Kong through its subsidiary, Spark Fintech Limited. Notably, only two cryptocurrency exchanges in Hong Kong are licensed by the SFC: OSL Exchange and HashKey Exchange, granted licenses on December 15, 2020, and November 9, 2022, respectively.
The deadline for submission of VATP license applications for cryptocurrency exchanges in Hong Kong concluded on February 29. Unlicensed entities must cease operations in the Special Administrative Region (SAR) by May 31, while those whose applications are rejected by the SFC are required to exit the city within three months.
