ASIC Warns Bitget Over 125:1 Crypto Leverage Risks

• Australian Securities and Investments Commission (ASIC) flagging of Bitget for promoting high-risk crypto derivatives without a financial services license.
• ASIC's emphasis on investor protection, citing dangerous leveraged products exceeding regulated caps as a major concern.

ASIC issued a formal warning to cryptocurrency exchange Bitget and its parent company, BTG Technology Holdings, for offering unauthorized crypto derivative products to Australian investors. In its announcement on July 28, 2025, the regulatory body highlighted that Bitget lacks the Australian Financial Services (AFS) license required to operate lawfully in the region. ASIC stressed that this action is a critical step toward safeguarding individual investors from high-risk, unregulated financial products, particularly in the volatile cryptocurrency sector.

ASIC stated that Bitget marketed crypto futures products, allowing investors to speculate on the price movements of digital assets. The regulator flagged that these products carry substantial risks due to extreme leverage ratios. While Australian law imposes a 2:1 leverage limit for authorized retail trading platforms, Bitget reportedly offered up to 125:1 leverage. This high leverage amplifies potential losses for inexperienced investors. ASIC expressed grave concerns that such aggressive financial structures could substantially harm investors who do not fully understand the associated risks.

Additionally, ASIC noted that Bitget's operations bypass essential consumer protections under Australian law. Without an AFS license, the exchange is not obligated to implement safeguards such as internal dispute resolution systems or measures to protect customer funds. This lack of oversight heightens risks for users. Despite these regulatory shortcomings, Bitget's platform remains accessible in Australia through its website and mobile application.

ASIC also highlighted that Bitget is registered with Australia's financial transaction monitoring agency (AUSTRAC). However, this registration only permits currency exchange services and does not cover derivative products. Meanwhile, regulators in other countries have raised similar concerns. Countries such as Spain, Austria, Germany, Canada, and Japan took action against Bitget’s unlicensed offerings in recent years. The agency acknowledged that Bitget recently added disclaimers to its website stating it does not target Australian residents. However, ASIC noted this move does not mitigate the company's non-compliance.

According to market data, Bitget Token (BGB) was trading at $4.684 as of 09:41 UTC on July 28, 2025. Its 24-hour trading volume showed a 2.373% increase.