Regulatory Warning Issued Against Bitget for Unlicensed Operations
The Australian financial regulatory authority has issued a cautionary notice regarding the cryptocurrency exchange Bitget, which has been providing “unlicensed” futures trading options with leverage ratios reaching 125:1. The exchange lacks the necessary local authorization to offer crypto derivatives in Australia.
Lack of Authorization for Crypto Derivatives
Bitget is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), enabling it to provide exchange services within Australia. However, the Australian Securities and Investments Commission (ASIC) has made it clear that the exchange is not authorized to conduct financial services in the country. In order to offer derivatives, firms must possess an Australian Financial Services (AFS) license.
Concerns Over Consumer Protection
The regulator expressed concerns regarding its capacity to support local users of a platform that operates without proper licensing and regulation, particularly in situations where issues may arise. ASIC noted that Bitget facilitates “crypto futures trading” via its website and mobile app, which are accessible to Australian residents. Nonetheless, it remains uncertain if the exchange has actively promoted its unlicensed products to customers in Australia.
High-Risk Investment Products
ASIC further underscored that Bitget’s futures products are considered high-risk derivative investments, allowing investors to speculate on future price fluctuations of cryptocurrencies. With a leverage ratio of 125:1, traders can borrow $125 for every $1 they deposit. In contrast, ASIC imposes a strict maximum leverage limit of 2:1 for crypto instruments.
Warnings from Multiple Regulators
ASIC reiterated that these products can be heavily leveraged, requiring only a minimal capital investment from traders to control substantial positions in the underlying assets, which amplifies both potential profits and losses. This is not the first time Bitget has faced scrutiny; since 2022, at least eight regulatory bodies, including those from Japan, Malaysia, Cyprus, France, and Germany, have issued similar warnings regarding the exchange’s unlicensed offerings.
Bitget’s Growth in the Crypto Market
Earlier this year, Bitget achieved the milestone of becoming the second-largest cryptocurrency exchange globally by user count, surpassing 100 million customers, trailing only behind Binance in terms of market position.
