Australian authorities have cautioned investors regarding Bitget’s operation of cryptocurrency futures products within the country without the necessary permits.
The Australian Securities and Investments Commission (ASIC) has stated that Bitget, together with its parent entity BTG Technology Holdings Limited, is actively promoting futures trading services despite lacking the required Australian license.
ASIC emphasizes that Bitget does not possess an Australian Financial Services (AFS) license. Consequently, they are prohibited from advertising or offering financial products to Australian residents.
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This lack of licensing means that Australian investors using Bitget are deprived of essential safeguards, encompassing avenues for resolving disputes and protection mechanisms for their invested capital.
The regulator’s statement underlines their commitment to mitigating the inherent risks associated with trading in intricate and unregulated cryptocurrency offerings, particularly to protect retail investors.
While licensed Australian firms are obliged to limit crypto derivatives leverage to a 2:1 ratio, Bitget permits its users to engage in trading with leverage reaching up to 125:1.
ASIC clarified:
Engaging in the trading of highly leveraged derivative products carries the potential for significant financial losses.
They also cautioned investors that dealing with entities lacking proper licensing could impede the recovery of potential losses and hinder access to appropriate support in the event of complications.
Bitget is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), the national body overseeing financial crime. However, this registration is limited to standard crypto exchange operations and does not authorize the company to offer or promote futures trading activities.
AUSTRAC recently revealed a revised strategy emphasizing cryptocurrency platforms as a focal point in the fight against financial crime. Want to know more? Explore the complete story here.
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