Crypto exchange Bybit has recently announced its decision to cease operations in France due to regulatory issues. The decision comes as a response to new developments from the French regulator, which has raised concerns about licensing requirements. Bybit has expressed its intention to return to the French market once it obtains the necessary licenses. The exchange has acknowledged the inconvenience caused by this decision and has asked for the support and cooperation of its users as it works to comply with regulatory requirements.
The French Financial Market Authority (AMF) had previously warned French crypto investors about Bybit’s lack of registration in the country. This warning could potentially lead to legal action against the exchange. Effective August 2nd, Bybit will restrict all French accounts to “Close-Only” mode, prohibiting users from opening new positions, purchasing products, or making deposits. This restriction will apply to all Bybit services, including trading, investments, and card services. By August 13th, all remaining open positions will be liquidated, and card services will be suspended, allowing users only to withdraw their assets and funds.
Bybit’s decision to cease operations in France comes at a time when the European regulatory landscape is undergoing significant changes. The impending Markets in Crypto-Assets (MiCA) regulations in Europe aim to standardize crypto regulations across member states. The European Parliament approved MiCA rules last year in phases, requiring exchanges to secure appropriate licensing to operate within the region. Exchanges like Coinbase, OKX, and Gemini have already obtained the necessary licenses to serve their users in compliance with the new regulations.
Overall, the regulatory challenges faced by Bybit in France highlight the complex and evolving nature of the cryptocurrency industry. Compliance with regulatory requirements is essential for exchanges to maintain operations and protect the interests of their users. Bybit’s decision to temporarily halt operations in France demonstrates the impact of regulatory scrutiny on the crypto market. As the industry continues to navigate regulatory changes, exchanges will need to adapt and comply with evolving standards to ensure the long-term sustainability of their businesses.
