Bybit Suspends Operations in France Due to Regulatory Crackdown
Bybit, a prominent cryptocurrency exchange, recently made the decision to suspend its services for French users due to regulatory developments and pressure from the Autorité des Marchés Financiers (AMF). Starting from August 2, French users will face limitations on their trading accounts, including the inability to open new positions or make any purchases. Bybit has designated all French accounts as “close-only,” meaning that users can only withdraw their funds. The exchange will also automatically liquidate any open positions in derivative products, trading bots, or spot trading starting from August 13. Additionally, card services will be temporarily suspended.
This is not the first time Bybit has encountered regulatory challenges in France. In 2022, the AMF blacklisted the exchange for non-compliance with French regulations. In May 2024, the AMF warned French citizens that Bybit was operating as a Digital Asset Service Provider without proper licensing. Bybit’s exit from the French market follows the implementation of the European Union’s Markets in Crypto Assets (MiCA) regulations, which provide guidelines for Virtual Asset Service Providers in the European region.
Bybit is not the only exchange facing these regulatory hurdles. In December 2023, Binance’s founder, Changpeng Zhao, was compelled by the AMF to relinquish ownership of Binance France. Despite these challenges, Bybit has experienced significant growth and currently ranks as the second-largest crypto exchange in terms of trading volume. However, the exchange has had to exit multiple countries due to stringent regulations.
Bybit intends to re-enter the French market once it obtains the necessary licenses. In the meantime, French users will need to find alternative exchanges for their crypto trading activities. The regulatory landscape for cryptocurrencies varies across countries, with some implementing strict regulations and others developing frameworks to harness the power of crypto. The global regulatory developments in this space will undoubtedly be of great interest in the future.