tl;dr
Bybit has announced the discontinuation of its services in France due to new regulatory developments, following the blacklisting of the exchange by the country's regulator, Autorité des Marchés Financiers (AMF). French users are instructed to close all open positions and withdraw their assets by a s...
Bybit has announced the discontinuation of its services in France due to new regulatory developments, following the blacklisting of the exchange by the country's regulator, Autorité des Marchés Financiers (AMF). French users are instructed to close all open positions and withdraw their assets by a specified date, as Bybit will liquidate all unclosed positions and restrict deposit functions. This move aligns with France's efforts to enforce regulations and combat illicit activities in the cryptocurrency market. Bybit's exit from France is part of a broader trend of regulatory changes in the European Union, particularly related to the Markets in Crypto-Assets (MiCA) framework, which aims to enhance consumer protection and ensure financial stability in the crypto industry.
Bybit announced the discontinuation of services in France amid new regulatory developments from the country’s regulator. Henceforth, French nationals and residents will have to look elsewhere for their crypto trading activities. France’s regulator, the Autorité des Marchés Financiers (AMF), announced blacklisting Bybit, calling on retail investors to exercise the utmost vigilance.
Bybit, one of the leading centralized crypto exchanges, informed French users they can no longer open or add new positions. Additionally, none of Bybit’s products will be accessible, and the deposit function is restricted. The exchange will liquidate all unclosed positions starting August 13, and no withdrawal requests will be processed. According to the announcement, several services are already restricted.
As BeInCrypto reported earlier, the AMF blacklisted Bybit, citing a lack of prior registration. The official announcement from the French regulator referred to the Monetary and Financial Code, saying unregistered platforms are illegal under French law.
Bybit’s operations have faced bans beyond France. Canada prohibited Bybit following its 2023 market exit, and the UK expelled the exchange for non-compliance with market rules. Notwithstanding, CoinGecko data puts Bybit at the top of the list among top crypto exchanges ranked by trust score. Second only to Binance, Bybit records up to 33.4 million monthly visits.
This regulatory development traces back to August 2023, when European nations began preparing for the Markets in Crypto-Assets (MiCA) regulation framework. The second phase of this regulation will occur in December, following the debut of phase one in July, which targeted the stablecoin market. The country introduced enhanced registration framework for Digital Asset Service Providers (DASPs). It also revised DASP rules in alignment with local licensing requirements under MiCA. With these changes in 2023, it became harder to obtain a crypto license in France. The second part of the MiCA framework will be fully applicable by December 30, 2024, addressing the prevention and prohibition of market abuse.
To navigate these regulatory changes successfully, proactive preparation, strong internal policies, and sophisticated surveillance systems will be critical. The oversight, promoting regulatory clarity and transparency, will inspire increased customer confidence because of improved consumer protection. For new players looking to join the space, however, entry barriers will likely be higher as the MiCA framework aims to achieve its mandate — to protect consumers and investors, ensure financial stability, and nurture innovation.