ASIC Warns Bitget Over Unlicensed 125x-Leveraged Crypto Futures

The Australian Securities and Investments Commission (ASIC) has issued a formal warning to Bitget, a cryptocurrency exchange, for offering unlicensed crypto futures to Australian investors without holding an Australian Financial Services (AFS) licence [1]. The regulator highlighted that Bitget’s derivatives, which feature leveraged positions of up to 125:1, expose users to heightened risks due to the absence of investor protections typically afforded by licensed entities [3]. This action follows months of scrutiny by ASIC on unregulated crypto platforms operating in the Australian market, with the regulator emphasizing that unlicensed services lack compliance with disclosure requirements and dispute resolution mechanisms [4].

The warning, first published in late June 2025, underscores concerns over the volatility and potential for significant financial losses associated with high-leverage products. ASIC reiterated that leveraged derivatives amplify exposure to market fluctuations, making losses potentially disproportionate to initial investments [3]. The regulator also noted that unlicensed platforms, like Bitget, cannot guarantee fund security or adherence to market integrity standards, leaving investors vulnerable to fraud or mismanagement [1].

Bitget, operated by BTG Technology Holdings Limited, has not publicly responded to the warnings. Historical data suggests that ASIC alerts often lead to service adjustments, including temporary or permanent trading halts in affected regions [5]. While no immediate market disruptions have been reported, traders speculate on potential suspensions of Bitget’s operations in Australia. The exchange’s recent publication of a Proof-of-Reserves report may indicate efforts to maintain user confidence amid regulatory scrutiny [5].

The case mirrors similar regulatory actions against global exchanges such as Binance and Bybit, reflecting a broader trend of tightening oversight in the crypto sector. Industry experts, including Kanalcoin, have noted that ASIC’s approach aligns with its mandate to prioritize investor protection, particularly as high-leverage products attract risk-seeking participants [6]. The regulator has previously warned that even licensed providers offering leveraged derivatives pose substantial risks due to their complexity and potential for rapid losses, a concern amplified in unlicensed scenarios [6].

For investors, the advisory serves as a cautionary reminder to verify a platform’s licensing status before engaging with high-risk products. ASIC has reported cases of retail investors suffering severe financial harm from unregulated crypto offerings, emphasizing the importance of adhering to local financial regulations [1]. The incident may prompt further regulatory action against international exchanges operating without proper authorization in Australia, despite challenges posed by the borderless nature of cryptocurrency markets.

Source:

[1] [ASIC Issues Warning Over Bitget’s ‘Unlicensed’ Crypto](https://decrypt.co/332009/asic-issues-warning-bitget-unlicensed-crypto-futures)

[2] [Investor Alert: ASIC Warns Investors Of Bitget’s Unlicensed](https://mondovisione.com/media-and-resources/news/investor-alert-asic-warns-investors-of-bitgets-unlicensed-cryptocurrency-futur-2025728/)

[3] [Australian Regulator Flags Bitget for 125x-Leveraged](https://www.financemagnates.com/cryptocurrency/australian-regulator-flags-bitget-for-125x-leveraged-crypto-futures-offerings/)

[4] [ASIC Issues Warning Over BTG Technology](https://www.financialstandard.com.au/news/asic-issues-warning-over-btg-technology-179809355)

[5] [Australia’s ASIC Warns Investors Of Bitget’s Unlicensed](https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3TM243:0-australia-s-asic-warns-investors-of-bitget-s-unlicensed-cryptocurrency-futures-products/)

[6] [RegFlow Hub on X: “[Cryptocurrency, OTC Derivatives] ASIC”](https://x.com/RegFlowHub/status/1949611025239810232)