The Australian financial market regulator has warned against the cryptocurrency exchange Bitget, which has been offering “unlicensed” futures products with 125:1 leverage. The exchange does not hold the proper local licence to offer crypto derivatives.
The warning, issued today (Monday), is against BTG Technology Holdings Limited and its related entities, which operate the Bitget brand.
No Licence to Offer Crypto Derivatives
Bitget is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), which allows it “to offer its exchange services in Australia.” However, the Australian Securities and Investments Commission (ASIC) highlighted that the exchange “is not licensed to carry on a financial services business in Australia.” Derivatives providers must hold an Australian Financial Services (AFS) licence.
Read more: Bitget Joins Robinhood and Kraken in Offering “Always-On” Stock Markets With Tokenized Wall Street Assets
The regulator’s concern seems to be its inability to assist local customers of an unlicensed and unregulated platform “if things go wrong.”
ASIC explained that Bitget offers its “crypto futures trading” through its website and mobile application, which Australians can access. However, it remains unclear whether the crypto exchange has been advertising its “unlicensed” products to Australians.
“Bitget’s futures products are high-risk, derivative investments in which investors can speculate on future movements in cryptocurrency prices,” ASIC stated.
Offering Risky Products
The regulator further pointed out that Bitget offers its futures products with 125:1 leverage, meaning traders can borrow $125 for every $1 of their deposit. However, ASIC sets a maximum limit of only 2:1 leverage for crypto instruments.
“Bitget’s futures products are high-risk, derivative investments in which investors can speculate on future movements in cryptocurrency prices,” the ASIC warning added.
“These products can be significantly leveraged, meaning a small amount of capital is required from investors to hold a large position in the underlying asset, increasing both potential gains and losses.”
Meanwhile, ASIC is not the first regulator to issue a warning against Bitget. Since 2022, at least eight other regulators, including those in Japan, Malaysia, Cyprus, France, and Germany, have issued warnings about the crypto exchange’s “unlicensed” offerings.
Earlier this year, Bitget became the second-largest crypto exchange in the world by customer numbers, surpassing 100 million. It now ranks just behind Binance.
The Australian financial market regulator has warned against the cryptocurrency exchange Bitget, which has been offering “unlicensed” futures products with 125:1 leverage. The exchange does not hold the proper local licence to offer crypto derivatives.
The warning, issued today (Monday), is against BTG Technology Holdings Limited and its related entities, which operate the Bitget brand.
No Licence to Offer Crypto Derivatives
Bitget is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), which allows it “to offer its exchange services in Australia.” However, the Australian Securities and Investments Commission (ASIC) highlighted that the exchange “is not licensed to carry on a financial services business in Australia.” Derivatives providers must hold an Australian Financial Services (AFS) licence.
Read more: Bitget Joins Robinhood and Kraken in Offering “Always-On” Stock Markets With Tokenized Wall Street Assets
The regulator’s concern seems to be its inability to assist local customers of an unlicensed and unregulated platform “if things go wrong.”
ASIC explained that Bitget offers its “crypto futures trading” through its website and mobile application, which Australians can access. However, it remains unclear whether the crypto exchange has been advertising its “unlicensed” products to Australians.
“Bitget’s futures products are high-risk, derivative investments in which investors can speculate on future movements in cryptocurrency prices,” ASIC stated.
Offering Risky Products
The regulator further pointed out that Bitget offers its futures products with 125:1 leverage, meaning traders can borrow $125 for every $1 of their deposit. However, ASIC sets a maximum limit of only 2:1 leverage for crypto instruments.
“Bitget’s futures products are high-risk, derivative investments in which investors can speculate on future movements in cryptocurrency prices,” the ASIC warning added.
“These products can be significantly leveraged, meaning a small amount of capital is required from investors to hold a large position in the underlying asset, increasing both potential gains and losses.”
Meanwhile, ASIC is not the first regulator to issue a warning against Bitget. Since 2022, at least eight other regulators, including those in Japan, Malaysia, Cyprus, France, and Germany, have issued warnings about the crypto exchange’s “unlicensed” offerings.
Earlier this year, Bitget became the second-largest crypto exchange in the world by customer numbers, surpassing 100 million. It now ranks just behind Binance.
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