Hong Kong’s Regulator Warns Crypto Investors
Hong Kong’s Securities and Futures Commission (SFC)
has warned investors about Bybit and several of its
offerings. The SFC highlighted the cryptocurrency exchange’s lack of licensing,
cautioning investors about the risks of engaging with the firm. The regulator has flagged 11 of Bybit’s products as suspicious investments, raising concerns about potential risks to investors.
Specifically, the SFC flagged multiple products offered
by Bybit, including futures contracts, options, leveraged tokens, and various
other crypto-related services. These products have reportedly been marketed to
investors in Hong Kong without proper authorization, potentially exposing them
to significant financial risks.
In Hong Kong, dealing in crypto-related products falls
under regulated activities, requiring entities to obtain proper licensing from
the SFC. The financial watchdog emphasized its commitment to taking enforcement action against
unlicensed activities, stressing the importance of investor caution.
The SFC mentioned: “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 Hong Kong SFC announced today that Bybit, the third largest offshore exchange, has been included in the warning list. Bybit’s Hong Kong entity is already applying for license, but its offshore entity is added to warning list, which is rare. https://t.co/byLw21hycS
— Wu Blockchain (@WuBlockchain) March 14, 2024
Suspected Fraud and Regulatory Response
Recently, the SFC launched an investigation into
BitForex, a cryptocurrency exchange, due to suspected fraud. The exchange ‘s sudden
disappearance on February 23 and the reported disappearance of $57 million from
its hot wallets raised significant concerns within the cryptocurrency
community.
The SFC flagged BitForex and added it to its alert
list due to the exchange’s lack of licensing or registration to operate a
Virtual Asset Trading Platform in Hong Kong. This move happened after BitForex abruptly went
offline, leaving users unable to access their accounts and sparking fears of
potential fraud.
Besides that, the SFC requested that the Hong Kong
Police Force block access to BitForex’s website links and social media pages.
This collaborative effort aims to protect investors from potential fraudulent
activities associated with unregistered cryptocurrency exchanges.
Hong Kong’s Securities and Futures Commission (SFC)
has warned investors about Bybit and several of its
offerings. The SFC highlighted the cryptocurrency exchange’s lack of licensing,
cautioning investors about the risks of engaging with the firm. The regulator has flagged 11 of Bybit’s products as suspicious investments, raising concerns about potential risks to investors.
Specifically, the SFC flagged multiple products offered
by Bybit, including futures contracts, options, leveraged tokens, and various
other crypto-related services. These products have reportedly been marketed to
investors in Hong Kong without proper authorization, potentially exposing them
to significant financial risks.
In Hong Kong, dealing in crypto-related products falls
under regulated activities, requiring entities to obtain proper licensing from
the SFC. The financial watchdog emphasized its commitment to taking enforcement action against
unlicensed activities, stressing the importance of investor caution.
The SFC mentioned: “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 Hong Kong SFC announced today that Bybit, the third largest offshore exchange, has been included in the warning list. Bybit’s Hong Kong entity is already applying for license, but its offshore entity is added to warning list, which is rare. https://t.co/byLw21hycS
— Wu Blockchain (@WuBlockchain) March 14, 2024
Suspected Fraud and Regulatory Response
Recently, the SFC launched an investigation into
BitForex, a cryptocurrency exchange, due to suspected fraud. The exchange ‘s sudden
disappearance on February 23 and the reported disappearance of $57 million from
its hot wallets raised significant concerns within the cryptocurrency
community.
The SFC flagged BitForex and added it to its alert
list due to the exchange’s lack of licensing or registration to operate a
Virtual Asset Trading Platform in Hong Kong. This move happened after BitForex abruptly went
offline, leaving users unable to access their accounts and sparking fears of
potential fraud.
Besides that, the SFC requested that the Hong Kong
Police Force block access to BitForex’s website links and social media pages.
This collaborative effort aims to protect investors from potential fraudulent
activities associated with unregistered cryptocurrency exchanges.
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