The Australian Securities and Investments Commission (ASIC) has issued a warning regarding the unsafe trading of crypto futures on the Bitget platform, which lacks a proper license for financial operations in the country.
ASIC's Warning on Bitget
ASIC stated that Bitget, a digital asset trading platform, does not hold a license to offer financial services in Australia and is operating outside the law.
Risks of Crypto Futures
The warning focuses on Bitget's promotion of high-risk crypto derivatives, particularly futures contracts available through its website and mobile app. ASIC noted that the platform offers leverage of up to 125:1, significantly exceeding the 2:1 limit set for retail investors. Traders may lose their entire position due to small market movements.
Recommendations for Investors
ASIC urged Australian investors to verify the licensing status of any platform before investing. The status of AFS license holders can be confirmed via ASIC's Professional Registers.
Investors should exercise caution when engaging with unlicensed platforms and verify their compliance with local laws before conducting trading activities.
