Bybit, a popular crypto exchange, recently announced its decision to end operations in France due to regulatory issues. The company cited new developments from the French regulator as the reason behind this move, suggesting that licensing problems were at the core of the issue. Bybit expressed its intention to return to the French market once it obtains the necessary licenses, emphasizing its commitment to meeting regulatory requirements.
The announcement from Bybit comes on the heels of a warning issued by the French Financial Market Authority (AMF) to investors regarding the exchange’s lack of registration in the country. The AMF had previously indicated that it might take legal action against Bybit for its non-compliance with registration requirements. In response to these regulatory concerns, Bybit has decided to place all French accounts in “Close-Only” mode, prohibiting users from opening new positions, buying products, or making deposits.
Effective August 2nd, Bybit will implement restrictions on a range of services including One-Click Buy, Bybit Card, P2P, Spot products, Derivatives, Copy Trading, Trading Bot, Bybit Earn, and Bybit Structured Products for French users. Furthermore, starting from August 13th, the exchange will liquidate all existing open positions and suspend card services, allowing users only to withdraw their assets and funds. These measures are in line with Bybit’s efforts to comply with regulatory changes not only in France but also in the broader European context.
Bybit’s decision to cease operations in France reflects a broader trend in the crypto industry, driven by upcoming regulatory changes such as the Markets in Crypto-Assets (MiCA) regulations in Europe. MiCA, a regulatory framework established by the European Union, aims to standardize crypto regulations across member states. While some exchanges like Coinbase, OKX, and Gemini have already obtained the necessary licenses to operate within the region, others are facing challenges in adapting to the evolving regulatory environment.
The closure of Bybit in France underscores the impact of regulatory changes on the crypto industry and highlights the importance of compliance with licensing requirements. As companies navigate the evolving regulatory landscape, they will need to adapt their business practices to ensure continued operations in jurisdictions subject to regulatory oversight. Bybit’s decision serves as a reminder of the complex regulatory environment that crypto exchanges must navigate to operate successfully in the global marketplace.
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