The Autorité des Marchés Financiers (AMF) in France has issued a warning to French crypto investors regarding the trading platform Bybit. In a notice dated May 16, the financial regulator emphasized that Bybit is not a registered platform in the country. The AMF called on retail investors to be extremely vigilant when considering investment proposals from Bybit or any other similar platforms operating illegally in France.
Despite being the third-largest crypto exchange by trading volume according to CoinMarketCap data, Bybit has failed to adhere to local regulations in France. The platform, launched in 2017, holds over $10 billion worth of its users’ assets. However, Bybit has not registered as a digital asset service provider (DASP) under the Monetary and Financial Code, as required by law in France. As a result, Bybit has been on the AMF’s blacklist since May 20, 2022, due to its persistent failure to comply with regulatory standards. The AMF has warned that legal action may be taken against Bybit for operating without proper registration, potentially leading to the blocking of access to the exchange’s website and other measures.
In response to the regulatory crackdown on Bybit, the AMF has advised investors to take necessary precautions to safeguard their assets. With the possibility of Bybit’s operations suddenly ceasing in France, investors are urged to explore alternative options to protect their investments. The AMF stressed the importance of investors making contingency plans in case the platform discontinues its services abruptly, leaving investors unable to access their digital assets or derivatives.
Despite the AMF’s warnings and regulatory actions, Bybit has yet to respond to inquiries from CryptoSlate as of press time. The lack of communication from Bybit raises further concerns among investors about the platform’s legitimacy and commitment to compliance with regulatory requirements. In a broader context, France is actively working to establish comprehensive regulations for cryptocurrency businesses operating within its jurisdiction. These efforts demonstrate the country’s dedication to protecting investors from potential risks associated with the rapidly growing crypto industry.
The AMF’s warning against Bybit serves as a reminder for investors to exercise caution and due diligence when engaging with cryptocurrency platforms. Bybit’s regulatory non-compliance highlights the importance of adhering to legal requirements to ensure investor protection and market integrity. As the crypto industry continues to evolve, regulatory authorities like the AMF play a crucial role in safeguarding the interests of investors and maintaining a healthy market environment.
