The Australian Securities and Investments Commission released a public warning against crypto exchange Bitget for providing unlicensed crypto futures with up to 125:1 leverage.
The regulator determined that Bitget marketed the products via its website and mobile application without possessing an Australian Financial Services licence.
Australians who utilised these high‑risk derivatives do not enjoy the dispute resolution rights and client money protection afforded under domestic law.
Warning Details
ASIC noted that Bitget’s crypto futures let investors bet on price moves in digital currencies. These derivative contracts require only a small deposit but can magnify gains or losses by 125 times.
By Australian regulations, the margin on crypto derivatives is limited to 2:1 for retail customers. By disregarding that cap, Bitget risked exposing customers to excessive volatility without adequate protection.
The regulator underlined that Bitget cannot lawfully advertise or solicit trading in these products. Any platform providing unregistered financial services in Australia violates the Corporations Act.
ASIC warned investors to verify if a company has an AFS licence prior to trading. Retail clients under unlicensed schemes cannot get any internal dispute procedures in case something goes amiss.
Also Read: Bitget Wallet And Mastercard Introduce Card For Direct Crypto Payments At 150M Merchants
Legal Permissions and Limitations
While Bitget may provide standard crypto exchange services, it lacks the broader licence needed for derivatives trading.
The exchange remains registered under Australia’s financial intelligence agency for basic wallet and exchange operations.
That registration does not extend to offering or advising on leveraged products. As a result, those futures offerings stand outside Australia’s regulatory safety net.
Bitget recently gained approval to operate in Georgia, securing the right to offer digital asset exchange and custodial wallet services there.
Earlier this year, it went on to become the 2nd‑largest crypto exchange by number of users, topping 100 million users. Yet its rapid global expansion has outpaced local licensing in some markets, drawing regulatory scrutiny.
Investor Risks and Regulatory Advice
Trading in unlicensed crypto derivatives can lead to substantial losses. High leverage means that a 1 % price swing against a position wipes out the entire deposit.
Without client money protection, users cannot reclaim funds held by the platform if it faces insolvency. ASIC advised Australians to visit its Professional Registers Search to confirm a company’s licence status.
The commission also recommended researching how an investment works and understanding complaint mechanisms.
New Live Streaming Feature Draws Criticism
Aside from the warning, Bitget has also recently introduced a live feature for live interaction between professional traders and their followers.
The tool allows for screen sharing, audio streaming, and co-hosting with the aim of introducing social trading features to the platform.
Regulatory insiders are concerned that such real-time interaction can blur the educational/solicitation line. They are afraid retail clients can be unfairly influenced by live hosts without good regulatory control.
This ASIC warning highlights the growing challenge of policing global crypto platforms in local markets. As exchanges innovate with new products and social features, they must also secure the proper licences to protect users.
Also Read: Crypto Exchange Bitget Unveils PRO Program To Serve Institutional And VIP Traders