Bybit is reportedly pursuing a VATP in Hong Kong as reported on February 1st.
Eleven of the Bybit exchange’s products are on the watchdogs warning list.
As of March 14, the cryptocurrency exchange Bybit was added to the warning list maintained by Hong Kong’s Securities & Futures Commission (SFC).
The regulator mentioned:
“The Securities and Futures Commission (SFC) today warns the public of an unlicensed virtual asset trading platform (VATP) known as Bybit, which offers trading services in crypto-related products in a number of jurisdictions.”
Non-compliance Issue
Eleven of the Bybit exchange’s products—including Bybit Futures, Options, Bybit Leveraged Tokens, Dual Assets, Bybit Lending, and Bybit Wealth Management—are on its warning list.
The regulator stated:
“The SFC is concerned that these products have also been offered to Hong Kong investors and wishes to make it clear that no entity in the Bybit group is licensed by or registered with the SFC to conduct any “regulated activity” in Hong Kong.”
To market crypto-related products to Hong Kong people, one must first get a license from the SFC, since these items may be classified as futures contracts or securities.
While https://www.bybit.com.hk is held by Spark Fintech Limited and does not provide crypto services in Hong Kong at the moment, the March 14 notice is referring to Bybit.com and its Seychelles-registered owner Bybit Fintech Limited. Using its Hong Kong company Spark Fintech Limited, Bybit is reportedly pursuing a virtual asset trading operator license (VATP) as reported on February 1st.
Moreover, on February 29th, the application deadline for VATPs for Hong Kong-based cryptocurrency exchanges passed. Also, by May 31st, businesses operating without the proper licensing must leave the region. Similarly, exchanges that have their VATP applications denied by the SFC are also required to leave the region within three months.