Bybit’s Regulatory Challenges
Hong Kong’s Securities and Futures Commission (SFC) has flagged Bybit as a “suspicious” crypto exchange. This move comes as Hong Kong tightens regulations on the crypto market. The SFC has identified 11 investment products offered by Bybit as potential risks for investors.
Despite Bybit’s efforts to comply with local regulations, the SFC’s warning highlights the challenges of crypto regulation. Bybit’s international operations are separate from its local entity, Spark Fintech Limited, which has applied for a crypto exchange license.
Crypto Regulation in Hong Kong
Hong Kong has set a deadline for crypto trading platforms to apply for licenses by February 29th. Platforms that fail to comply may be shut down by May 31st.
Several major crypto exchanges, including OKX, Crypto.com, and Bybit, have applied for licenses in Hong Kong. However, the regulatory framework focuses on investor protection, which can impose compliance costs on exchanges.
HTX Withdraws License Application
In response to the regulatory shifts, HTX (formerly Huobi Global) has withdrawn its application for a crypto exchange license in Hong Kong. This decision marks a change in direction for HTX, which had previously expressed interest in establishing a regulated exchange in the city.
