Bybit Suspends Activities in France Due to Regulatory Crackdown
Bybit, a prominent cryptocurrency exchange, has made the decision to suspend its services in the French market. Effective from August 2, the exchange will no longer operate for French nationals due to recent regulatory developments and pressures from the Autorité des Marchés Financiers (AMF). This article will delve into the implications of this decision for Bybit and its French users.
Limited access to services will be imposed on French Bybit users starting from August 2. They will no longer be able to open new positions or make any purchases. Bybit has designated all French users’ accounts as “close-only,” preventing any new trading activities. In an announcement blog, the crypto exchange shared details about the termination of its services. The update states that all types of product purchases, including One-click buy, P2P, spot, and derivative trading, will be restricted. Users will no longer be able to deposit funds into their accounts, and the only action available to them will be to withdraw their funds. Furthermore, as of August 13, the exchange will automatically liquidate any open positions in derivative products, trading bots, or spot trading. Card services will also be temporarily suspended.
If French users have any inquiries regarding this matter, they can submit a support ticket to the Bybit team.
Bybit has previously encountered regulatory concerns in France. In 2022, the AMF blacklisted the crypto exchange due to non-compliance with French regulations. In May 2024, they warned French citizens that Bybit was operating as a Digital Asset Service Provider without the necessary licensing. Bybit’s exit from the French market aligns with the implementation of the European Union’s Markets in Crypto Assets (MiCA) regulations, which provide guidelines for Virtual Asset Service Providers (VASPs) in the European region.
Bybit is not the first exchange to face such challenges. In December 2023, Binance’s founder Changpeng Zhao, also known as CZ, was compelled by the AMF to divest ownership of Binance France.
As of August 1, Bybit holds the position as the second largest crypto exchange in terms of trading volume. Binance currently leads the market with $11.4 billion in trading volume on the first day of August, while Bybit has reached $5.5 billion. Despite encountering various regulatory hurdles, Bybit has experienced significant growth. However, it has been forced to withdraw from multiple countries due to strict regulations.
Bybit intends to re-enter the French market once it obtains the necessary licenses. After Bybit’s departure from the French market, users will need to seek alternative exchanges for their crypto trading activities. The regulatory landscape for cryptocurrencies remains stringent in many countries, while others are developing frameworks to harness the potential of cryptocurrencies. The global regulatory developments in the future will undoubtedly be intriguing to observe.
Tags: Centralised Exchange, Exchange News