Australia’s corporate regulator has issued a formal warning against Bitget, accusing the cryptocurrency exchange of offering high-risk derivatives products without the necessary financial license.
In a statement released on Sunday, the Australian Securities and Investments Commission (ASIC) stated that Bitget and its parent company, BTG Technology Holdings Limited, have been unlawfully promoting crypto futures to local investors. ASIC emphasized that Bitget does not hold an Australian Financial Services (AFS) license, which is required to legally offer or promote financial products in the country.
Unlicensed Products and High Leverage Under Scrutiny
The watchdog highlighted concerns over the platform’s high-leverage offerings, which allow users to trade cryptocurrency derivatives at up to 125:1 leverage—far exceeding the 2:1 leverage cap imposed on licensed platforms in Australia.
“For every dollar invested at this leverage rate, there is potential for 125 times magnified gains or losses,” ASIC stated, warning that such products carry a high risk of significant financial loss for retail traders.
Without an AFS license, Bitget users are not protected by consumer safeguards, including internal dispute resolution processes and protections around client funds, ASIC noted.
Part of Broader Global Scrutiny
ASIC’s action follows similar regulatory moves across several jurisdictions. Since 2022, authorities in countries such as Spain, Germany, France, Canada, Japan, and Malaysia have either warned against or taken action targeting Bitget’s operations.
The warning also draws parallels with last year’s enforcement against Binance Australia Derivatives, whose license was revoked after being found to have misclassified retail clients, denying them essential consumer protections.
While Bitget is registered with AUSTRAC—Australia’s financial intelligence agency—for basic exchange services, ASIC said this registration does not authorize it to deal in complex derivative products.
Calls for Regulatory Clarity
Bridget Nichols, chief commercial officer at digital asset manager Monochrome, told Decrypt that ambiguity in Australia’s regulatory framework complicates licensing efforts for crypto platforms.
“The government has yet to provide binding legislative clarity,” she said, adding that ASIC’s protective stance, while important, may also hinder innovation in the digital assets sector. Nichols cited Monochrome’s own three-year journey to launch a Bitcoin ETF as evidence of the difficulties in navigating the current regulatory landscape.
