Bybit, a digital currency exchange, has been labeled as a "suspicious" crypto trading platform by the financial regulator in Hong Kong. Despite the local entity Spark Fintech, connected to Bybit, applying for a cryptocurrency exchange license at the start of this year, the Hong Kong Securities and Futures Commission has added Bybit to its list of “suspicious virtual asset trading platforms." Moreover, the SFC highlighted 11 products by Bybit as questionable.

These contentious investment offerings include various contracts like Bybit Futures Contracts and Inverse Futures Contracts, along with Bybit Options, Bybit Leveraged Tokens, Dual Asset versions, Bybit Shark Fin, Liquidity Mining, and more as outlined on the SFC's website. The SFC expressed worry that these products were marketed to investors in Hong Kong and clarified that no entity within the Bybit group holds a license from the SFC for any regulated activities in Hong Kong.

A Bybit spokesperson, in response to the SFC's concerns, stated that they could not provide specific insights on any particular product or regulatory investigation at this time. The spokesperson assured that different products were available in various regions to comply with local regulations and confirmed the unavailability of these flagged products in the Hong Kong market.

In an ongoing review process, the regulator highlighted that the flagged activities were carried out by bybit.com, which is run by Bybit Fintech Limited, a company based in Seychelles. This stands in contrast to bybit.com.hk, a separate platform managed by Spark Fintech Limited, a Hong Kong-based entity affiliated with Bybit. In January, Spark Fintech lodged its application for a license to function as a “virtual asset trading platform” with the SFC, according to the regulator's list of applicants.