Australia’s financial regulator has issued a warning to Bitget
$4.72B
for offering crypto futures products without proper authorization.
The Australian Securities and Investments Commission (ASIC) said that Bitget, along with its parent company BTG Technology Holdings Limited, has been promoting futures trading services that are not licensed in the country.
According to ASIC, Bitget is not registered under an Australian Financial Services (AFS) licence. This means it is not allowed to advertise or offer its financial products to people in Australia.
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Without this license, investors using the platform do not have access to important protections, including dispute resolution and safeguards for their funds.
The regulator said the warning is part of its ongoing efforts to reduce the risks that come with trading complex and unregulated crypto products, especially for everyday investors.
While licensed firms in Australia must limit crypto derivatives to a 2:1 leverage ratio, Bitget allows users to trade with leverage of up to 125:1.
ASIC explained:
Trading in highly leveraged derivative products can result in substantial losses.
They also reminded investors that dealing with unlicensed providers could make it harder to recover losses or get help if something goes wrong.
Bitget is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), the agency responsible for monitoring financial crime. However, that registration only covers basic crypto exchange services, and it does not give the company permission to offer or promote futures trading.
AUSTRAC recently outlined a new strategy to combat financial crime by naming cryptocurrency platforms as a top priority. What did the agency say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
