Burn

Terra

Read

The Hong Kong Securities and Futures Commission (SFC) has issued a warning against the virtual asset trading platform Bybit. The alert pertains to multiple crypto-related products provided by Bybit that are suspected of being unlicensed and risky to investors located in Hong Kong. The SFC’s announcement aims to clarify the <a href="https://coingape.com/hong-kongs-sfc-tightens-crypto-regulations-post-jpex/" rel="noopener noreferrer nofollow">regulatory stance</a> on virtual asset trading within the jurisdiction, emphasizing the need for platforms to obtain proper licenses for certain activities.
<h2 id="overview-of-bybit-s-unlicensed-products">Overview of Bybit’s Unlicensed Products</h2>
In this regard, the warning issued by the SFC is specifically aimed at a variety of products offered by <a href="https://coingape.com/bybit-in-big-trouble-if-american-investors-used-the-platform-to-move-funds-to-coinbase/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">Bybit</a>, including future contracts, options, leveraged tokens, and various innovative crypto investment schemes like Dual Asset and Shark Fin. According to the SFC, these offerings may constitute “futures contracts” or “securities” within the framework of the Securities and Futures Ordinance (SFO), and therefore, an operation with a license is required. Non-licensing and non-registration of these activities with the SFC raise major issues concerning the legality and safety of these investment products to the investing public in Hong Kong.
The SFC warning highlights the threats that come with investing in unlicensed virtual asset products. However, the investors may find it difficult to seek redress in case of termination of the platform or misappropriation of assets. The difficulty in obtaining legal remedies, especially against entities lacking a strong connection to Hong Kong, compounds the risk for local investors. To address these concerns, the SFC has added Bybit to its Suspicious Virtual Asset Trading Platforms <a href="https://coingape.com/hong-kong-receives-24-crypto-exchange-requests-amid-may-deadline/" rel="noopener noreferrer nofollow">Alert List</a>, with specific products in question.
<h2 id="hong-kong-s-regulatory-stance">Hong Kong’s Regulatory Stance</h2>
The SFC’s caution also confirms the commission’s determination to take enforcement actions against unlicensed activities where needed. This position is a reflection of the wider agenda of Hong Kong to maintain a balance between investor protection and the goal of becoming the global center for crypto and virtual assets. This recent action against Bybit follows a similar warning issued to another crypto exchange, <a href="https://coingape.com/bitforex-down-crypto-operations-stop-after-suspicious-56-million-exit-scam/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">BitForex</a>, highlighting the SFC’s vigilant approach to monitoring the crypto space.
As such, the <a href="https://coingape.com/hong-kong-sfc-alerts-public-on-hongkongdao-and-bitcuped-scams/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">SFC’s focus</a> on licensing and regulation keeps tabs on the legal guidelines that control the trading and promotion of crypto-related products within the territory. Through such alerts, the SFC seeks to discourage unlicensed operations and maintain the integrity of the financial markets in Hong Kong.
Read Also: <a href="https://coingape.com/crypto-exchange-joins-binance-to-burn-terra-luna-classic-lunc-trading-fees/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">Crypto Exchange Joins #Binance to Burn Terra Luna Classic (LUNC) Trading Fees</a>
The post <a href="https://coingape.com/hong-kong-sfc-issues-alert-on-bybit-and-its-products/" rel="noopener noreferrer nofollow">Hong Kong SFC Issues Alert on Bybit and Its Products</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Hong Kong SFC Issues Alert on Bybit and Its Products

목차

Coingape News Media

2024년 3월 14일에 게재된 다른 기사

Why Isn’t XRP Price Gaining Sufficient Bullish Momentum?

XRP’s Time Is Coming: Top Analyst Backs XRP Despite Lag

BNB Chain set for new upgrade, follows Ethereum’s footsteps

Lif3 partners with BitGo to Enhance Blockchain Security for Institutional DeFi Assets

Crypto and AI Demands Spike US Methane Emissions to 6 Million Tons

Bitcoin Mining Challenge Hits Record High Prior to Halving Event

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!