Bybit Exits French Market in Response to Regulatory Changes

Bybit, the prominent cryptocurrency exchange, has announced its decision to withdraw its services from France due to recent regulatory developments. The move highlights Bybit's ongoing commitment to operating in full compliance with all applicable rules and regulations.

In May, France's financial regulator, Autorité des Marchés Financiers (AMF), issued a warning indicating that Bybit had been blacklisted. This blacklisting has been in effect since May 2022. The AMF's warning reminded citizens that Bybit was not authorized to provide digital asset services in France.

In a recent statement, Bybit confirmed its decision to cease operations for French users starting August 2. As a result, French users will no longer be able to purchase products, add to existing positions, or make deposits on the platform. The company has advised all French users to wind down and close their open positions across all products and to begin withdrawing their assets and funds from their accounts.

Bybit's exit from France is part of a broader response to the regulatory environment. The AMF's blacklisting reflects France's enforcement of the European Union's new Markets in Crypto Assets (MiCA) regulations. Under these regulations, companies are required to hold a digital asset service provider license to operate legally in France. Bybit, lacking this necessary license, is unable to continue servicing French nationals and residents.

The MiCA regime mandates that firms operating in the crypto space must have an official office and be registered with an EU nation to be eligible for MiCA approval. A single Crypto Asset Service Provider license under MiCA would allow a company to service clients across the entire European Union.

Bybit's decision underscores the increasing regulatory scrutiny in the cryptocurrency industry and serves as a reminder of the importance of compliance with local regulations for global operations.

Sourse Credit: CoinDesk