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Dubai-based derivatives exchange Bybit and 11 of its products have been listed as ‘suspicious’ by Hong Kong’s market regulator.
The country’s Securities and Futures Commission (SFC) added Bybit to its ‘Suspicious Virtual Asset Trading Platforms Alert List’ on Thursday.
At the same time, it added a number of the company’s products, including ‘Futures Contracts and Inverse Futures Contracts,’ ‘Bybit Leveraged Tokens,’ and ‘Bybit Wealth Management’ to its ‘Suspicious Investment Products Alert List.’
In a statement, the SFC said, “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.”
It added that it “will not hesitate to take enforcement action against unlicensed activities where appropriate.”
This month, the SFC also issued warnings about Hong Kong-headquartered exchange BitForex after it shut down withdrawals and saw outflows of nearly $60 million.
Read more: Crypto exchange BitForex shuts down withdrawals and disappears
Coinbase received subpoena possibly linked to Bybit
Late last year, Coinbase reportedly contacted users, informing them of a subpoena it received from the Commodity Futures Trading Commission (CFTC) demanding user account information and transaction history.
The email sparked speculation that the CFTC is targeting Coinbase users who interacted with Bybit — suggesting the commission may be preparing for legal action against the exchange.
“We write to inform you that Coinbase has been served with a subpoena,” the email to select users read, “seeking information related to your account and account transaction activity.”
CFTC demands Coinbase user data in suspected Bybit probe
However, the email stated that Coinbase may decide to counter the CFTC subpoena — and therefore user information will not yet be handed over.
“No action is required from you,” the email continued, “but Coinbase may respond to the Subpoena unless served before November 30, 2023 with a motion to quash or other objection to the subpoena that has been filed with the Court — including by sending information concerning your Coinbase account to the [CFTC].”
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