Bitget faces regulatory heat in Australia over unlicensed 125x crypto futures

The Australian Securities and Investments Commission (ASIC) has issued a formal warning against Bitget for promoting and offering unlicensed crypto futures products with leverage as high as 125:1.

While Bitget holds limited authorisation to operate as a crypto exchange in Australia, it is not licensed to provide financial services such as derivative trading.

The regulator said the platform’s crypto futures offering breached local rules and posed significant risks to Australian investors by advertising highly leveraged products through its website and mobile app.

Bitget, one of the world’s largest cryptocurrency exchanges by customer base, has already drawn regulatory scrutiny across multiple jurisdictions.

The ASIC warning is part of a growing pattern of enforcement actions worldwide against the exchange’s derivatives services.

Bitget’s leverage offer exceeds Australia’s 2:1 limit

According to ASIC, crypto futures contracts are classified as high-risk derivative instruments.

These allow users to speculate on the future value of digital assets, but in doing so, expose them to outsized losses—especially when combined with high leverage.

While ASIC currently caps leverage on such products at 2:1, Bitget’s promotional materials reportedly showcased crypto futures with leverage up to 125:1, far exceeding legal limits.

ASIC emphasised that investors using such products can control large positions with relatively small capital inputs, multiplying the scale of both potential profits and losses.

The regulator said this practice “can result in substantial losses for investors” and warned users to be cautious of platforms promoting such instruments without proper licensing.

Exchange warns users but continues to offer the product

Following ASIC’s concerns, Bitget added disclaimers to its site and app stating that it is neither licensed nor authorised to offer crypto derivatives in Australia.

Despite this, the exchange’s futures trading services remain accessible to users through its platform.

Bitget is legally permitted to provide spot trading and custodial services in Australia, but it lacks an Australian Financial Services (AFS) licence, which is mandatory for offering derivative products.

The continued promotion of futures contracts may place the exchange at further risk of regulatory action or enforcement proceedings.

Global crackdown intensifies with eight regulators issuing warnings

Bitget’s regulatory troubles extend far beyond Australia. At least eight countries have raised concerns over the platform’s operations, particularly its futures products.

In 2023, Germany’s financial watchdog BaFin cautioned investors against engaging with Bitget, stating that the exchange was not under its supervision.

Similar warnings have since been issued by regulators in Canada, France, Cyprus, Malaysia, Spain, and Japan.

Each of these authorities has expressed concern about Bitget offering financial products without appropriate authorisation or oversight.

In some cases, regulatory actions have included website takedown requests or advisories to consumers.

Despite these setbacks, Bitget has continued to expand. Last month, the platform received regulatory approval to operate in Georgia, where it now offers digital asset exchange and custodial wallet services.

Earlier this year, Bitget surpassed 100 million registered users globally, becoming the second-largest crypto exchange by customer base.

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