In a significant development on August 1, Bybit, a popular cryptocurrency exchange, announced its decision to suspend operations in France. This decision comes in response to recent actions and regulatory developments spearheaded by France’s financial regulator, Autorité des Marchés Financiers (AMF).
Bybit attributed its exit from the French market to new regulatory measures implemented by the AMF. The French regulator has intensified scrutiny of crypto exchanges, especially those like Bybit that had not registered as a Digital Asset Services Provider (DASP).
Starting August 2, French users of Bybit will experience significant changes:
- Accounts will shift to a “close-only” mode, allowing users to close existing positions but preventing the opening of new positions or depositing of funds.
- By August 13, any remaining open positions will be automatically liquidated.
- Card services will also be suspended, though users will still have the option to withdraw remaining funds from their accounts.
Bybit’s Future Aspirations in France
Despite the current setback, Bybit remains optimistic about its future in the French market. The exchange expressed its intention to return once it secures the necessary regulatory approvals under French law.
AMF’s Stance on Unregistered Exchanges
The AMF had previously issued a warning on May 16, alerting French residents of Bybit’s status. The regulator noted that Bybit had been blacklisted since 2022 for failing to comply with registration requirements as a DASP, raising concerns about potential sudden shutdowns.
In June, Bybit achieved a milestone by surpassing Coinbase, becoming the world’s second-largest exchange by trading volume. This growth comes even as it faces global regulatory challenges, similar to those encountered by Binance, the largest cryptocurrency exchange.
Binance’s Regulatory Troubles in France
In December 2023, France’s AMF targeted Binance amidst legal challenges faced by its founder, Changpeng Zhao, in the United States. The French regulator’s ultimatum led to significant changes in the ownership structure of Binance France, aligning with compliance efforts related to US sanctions.
The restructuring saw Changpeng Zhao relinquishing ownership, with the company being handed over to shareholders who were also founding members of Binance. This move was aimed at stabilizing the exchange’s operations within France’s regulatory framework.
| Entity | Regulatory Action | Exchange Response |
|---|---|---|
| Bybit | Required to halt operations for non-compliance | Suspended operations, plans to re-enter market |
| Binance | Ownership restructuring due to legal and regulatory pressures | Ownership transferred to comply with regulations |
The cryptocurrency market in France is undergoing significant transformations due to enhanced regulatory oversight. Exchanges like Bybit and Binance are navigating these changes, which are shaping the future of digital asset services in the country. While these developments pose immediate challenges, they also pave the way for more structured and secure operations in the long term.
Featured image credit: jcomp via Freepik
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