The Australian Securities and Investments Commission (ASIC) has issued a warning to cryptocurrency exchange Bitget and its parent company for offering unlicensed derivatives trading services to Australian clients without holding an Australian Financial Services (AFS) license.
Bitget is accused of providing crypto futures with leverage ratios reaching 125:1, a figure that drastically exceeds ASIC’s prescribed 2:1 leverage limit for licensed derivative products. This excessive leverage substantially increases risks of significant financial losses for retail investors.
The regulatory action aligns with global scrutiny targeting unlicensed crypto platforms, following similar enforcement measures by authorities in Spain, Germany, Canada, and other jurisdictions. ASIC emphasized that such offshore platforms typically lack the comprehensive investor safeguards required of licensed Australian providers.
Unlicensed exchanges like Bitget operate without mandatory dispute resolution channels, compensation arrangements, or responsible lending obligations. ASIC reiterated that high-leverage crypto derivatives pose acute dangers to retail traders, underscoring its focus on investor protection amid growing market risks.