ASIC Warns Bitget Over Unlicensed 125:1 Leverage Crypto Futures Products

The Australian Securities and Investments Commission (ASIC) has issued a stern warning to investors about Bitget’s unlicensed crypto futures offerings, highlighting significant regulatory and consumer protection concerns. The regulator confirmed that BTG Technology Holdings Limited, Bitget’s parent company, is operating in Australia without an Australian Financial Services (AFS) license. The platform’s futures products, marketed with leverage of up to 125:1, far exceed the 2:1 cap permitted under Australian law for licensed derivatives [1]. ASIC emphasized that these unlicensed products pose extreme risks to retail investors, who face amplified exposure to volatile price movements and potential total capital loss. The regulator stated that such leveraged derivatives “can result in substantial losses for investors” due to the small capital required to hold large positions, which increases vulnerability to market swings [2].

Bitget, which is permitted to offer crypto spot trading in Australia, has not secured approval for financial services activities. This distinction means investors using its futures products lack access to critical safeguards, including segregated client assets, transparent operational standards, and dispute resolution mechanisms mandated under AFS licensing requirements [3]. ASIC reiterated that unlicensed platforms operate outside the legal framework designed to mitigate fraud, insolvency, and unfair trading practices. The agency urged investors to verify a platform’s licensing status through its Professional Registers and avoid services promoting unsustainably high leverage or aggressive marketing of unregulated products [4].

The warning follows a pattern of global regulatory scrutiny against Bitget. Last year, Germany’s BaFin flagged the platform for operating without oversight, while regulators in Canada, France, Cyprus, Malaysia, Spain, and Japan have also issued similar alerts. Bitget added disclaimers to its Australian-facing materials prior to ASIC’s warning, acknowledging its unlicensed status for derivatives but continuing to market the products [5]. The exchange has expanded its regulatory footprint in recent months, securing approval to operate in Georgia, where it now provides digital asset exchange and custodial wallet services.

ASIC’s action signals a broader regulatory trend toward stricter oversight of cross-border crypto services. The regulator stressed that platforms offering derivatives in Australia must comply with local licensing requirements or face reputational and legal consequences. This approach aligns with global efforts to enforce jurisdictional accountability, potentially leading to a more fragmented but safer crypto market. The agency emphasized that investor education and clear risk disclosures are essential to protecting retail participants from high-leverage products [6].

Sources:

[1] [title1Unlicensed Crypto Futures: ASIC’s Urgent Warning to Bitget Reveals Extreme Dangers] [url1https://coinmarketcap.com/community/articles/68872107361abe5ce4db1f24/]

[2] [title2ASIC Warns Bitget Over Unlicensed Crypto Futures, 125:1 Leverage Exceeds 2:1 Cap] [url2https://www.ainvest.com/news/asic-warns-bitget-unlicensed-crypto-futures-125-1-leverage-exceeds-2-1-cap-2507/]

[3] [title3Australian Regulator Flags Bitget for 125x-Leveraged Crypto Futures Offerings] [url3https://www.financemagnates.com/cryptocurrency/australian-regulator-flags-bitget-for-125x-leveraged-crypto-futures-offerings/]

[4] [title4ASIC Warns Australians Against Bitget’s “Unlicensed” Crypto Futures Offerings] [url4https://mondovisione.com/media-and-resources/news/investor-alert-asic-warns-investors-of-bitgets-unlicensed-cryptocurrency-futur-2025728/]

[5] [title5ASIC Issues Stern Warning to Bitget for Unlicensed Crypto Futures Offerings] [url5https://bitcoinworld.co.in/unlicensed-crypto-futures-warning/]

[6] [title6ASIC Warns Bitget Over Unlicensed 125:1 Leverage Crypto Futures Products] [url6https://www.ainvest.com/news/asic-warns-bitget-unlicensed-125-1-leverage-crypto-futures-2507/]