Bybit, a leading crypto exchange, terminated its digital asset services in France due to regulatory developments introduced by French legal authorities. The exchange advises French users to withdraw their funds ASAP, as the company will suspend all its product offerings in the state except withdrawals.
Effective August 2, French users will no longer be able to trade or buy assets on the exchange. The exchange will close all the existing perpetual positions, and any attempt to open new trades will be canceled. By the deadline of August 13, all open positions will be closed automatically. Moreover, the platform will halt the deposit feature for French users, according to an announcement by Bybit.
Advertisement
Bybit affirmed that the restriction would affect Bybit’s products, including One-Click Buy, Spot products, P2P, Derivative products, Bot trading, Copy trading, and Bybit Card services for French users. Exchange said that all customer accounts in France will turn into “Close Only” mode to prevent any new position openings or asset purchases on the platform.
Bybit Ends Operations in France as AMF Tightens Grip
Bybit’s exit from the French market comes after the platform received a warning from the French regulatory authority, the Autorité des Marchés Financiers (AMF). On May 16, AMF informed French nationals that Bybit failed to comply with the regulatory standards set by the authority and has been legally unauthorized since 2022. Moreover, AMF stated that before operating as an authorized platform in France, any exchange must register as a Digital Asset Services Provider (DASP).
At that time, AMF noted in a statement:
Unregistered platforms providing these services in France are illegal under French law. Bybit is not registered as a DASP.
MiCA Regulations Push Exchanges to Exit Regime
Furthermore, the exchange’s winding down in France resulted from the implementation of Europe’s Market in Crypto-Assets (MiCA) regulations. The European Commission introduced this regulatory framework in September 2020 to oversee liquidity, anti-money laundering, and enhanced consumer protection protocols. French legal entities plan to implement MiCA regulations entirely by December 2024.
While expressing future intentions for French users, Bybit noted in a statement:
We apologize for any inconvenience this may cause and appreciate your support and cooperation as we step up our efforts to meet regulatory requirements. We look forward to serving you again in the near future once the appropriate licences allowing us to do so have been secured.
The exchange has grown immensely during the past few years. Last month, Bybit surpassed Coinbase in trading volume. Now, with a 24-hour trading volume of $5.3 billion, the exchange ranks #4 on the list of top crypto exchanges. Moreover, the exchange holds assets worth $9.5 billion, as per the data provided by CoinMarketcap.
Bybit surpassed Coinbase in March to become the world’s second-largest cryptocurrency exchange after Binance, according to a report from crypto research firm Kaiko. https://t.co/aPZyw3jiC7
— Bloomberg (@business) June 25, 2024
Bybit’s move to leave the French market reflects increased regulatory scrutiny and tightened legal standards. However, this step also aligns Bybit with a larger trend followed by many global exchanges. Recently, multiple leading exchanges halted their services in different jurisdictions due to legal troubles. These include Houbi, HKX, Gate.io, and OKX leaving the Hong Kong market. Gate.io also stopped its operations in Japan last month. Similarly, Binance faced regulatory troubles in France back in December 2023.
Learn More
- Next Cryptocurrency to Explode in August 2024
- Ethena Price Prediction 2024 – 2040
- Next 100x Crypto – 12 Promising Coins with Power to 100x
- Coinbase Denies Accusations of Violating Campaign Finance Laws with PAC Donations
Advertisement
