ASIC Warns Bitget Over Unlicensed Crypto Futures and Excessive Leverage

Highlights:

• ASIC noted that Bitget offered high-leverage crypto futures in Australia without holding the required financial license.
• Bitget promoted risky futures products with high leverage, which breaks Australia’s investor protection rules.
• Eight countries have warned against Bitget for offering crypto futures services without approval from authorities.

Crypto exchange Bitget is under scrutiny in Australia for offering high-leverage futures products that exceed local rules. The Australian Securities and Investments Commission (ASIC) said Bitget has been promoting crypto derivatives with leverage of up to 125:1. This offering appeared on the exchange’s mobile app and website and targeted Australian investors without the required license.

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🚨 BREAKING: ASIC issues warning over Bitget's 'unlicensed' crypto futures products in Australia, targeting Australian investors. ASIC aims to rein in platforms offering unauthorized services.

— CryptoAlert (@SatoshiWatch) July 28, 2025

ASIC explained that these futures contracts let users speculate on digital asset prices with a small amount of capital. This may, however, result in high profits or sharp losses since the leverage is high. In Australia, the allowed maximum leverage that retail investors may have on such products is 2:1. Bitget’s 125:1 rate significantly increases the financial risk faced by users.

The commission said Bitget does not hold an Australian Financial Services (AFS) license. Without this license, the exchange cannot lawfully offer or promote financial products to Australian customers. It can provide crypto exchange services, but its futures offerings fall outside that scope. The lack of a license also means users do not have access to key protections such as dispute resolution and safeguards for client funds.

ASIC warned that trading in such high-leverage futures can lead to serious financial harm. The agency added that a small shift in market prices could wipe out an investor’s capital quickly. Therefore, it advised users to remain cautious when using platforms that offer such products without proper authorization.

ASIC Warns Bitget Over Unlicensed Derivatives and Investor Risk

ASIC issued a formal warning to Bitget and its parent company, BTG Technology Holdings Limited, over their unlicensed activities. The agency said the exchange continued to promote its high-risk futures products despite lacking the necessary AFS license. These products were marketed through Bitget’s mobile app and website and were made available to Australian investors.

The advisory also discussed the danger of crypto derivatives, particularly those with high leverage. According to ASIC, these products are complicated and should not be sold to retail investors. The leverage ratio of up to 125:1 means that a small fluctuation in the asset price may entail huge losses. The commission said the lack of licensing leaves users without protection, increasing the danger of financial loss.

Although Bitget later added disclaimers stating it is not authorized to offer these products in Australia, the services remain active. ASIC said the disclaimers do not make the product compliant with the country’s laws. The agency also confirmed that the issue is part of its broader effort to reduce risks from unsafe financial products targeting retail users.

Previously, ASIC revoked Binance Australia Derivatives’ license after it failed to properly classify retail clients. That case also involved users losing basic protections. Now, with Bitget, the agency says it is continuing its mission to reduce exposure to high-risk investment tools in the digital asset market.

Global Pressure Grows as Exchange Expands Despite Setbacks

At least eight nations have voiced concerns over the exchange. Authorities in the countries said Bitget offered crypto futures without approval. Some countries issued public advisories or blocked access to the exchange. Germany’s financial authority stated it does not supervise Bitget. Other nations warned investors against using the platform due to similar concerns. Despite these actions, Bitget has expanded its operations.

Last month, Bitget received approval to operate in Georgia. It now provides exchange services and digital wallets in that region. The exchange also reached 100 million registered users globally. It became the second-largest crypto platform by customer base earlier this year.

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