TLDR
- Bybit has made public its plan to step back from the French market, pointing to 'regulatory changes' as the driving force.
- As of August 13, French users can only pull out their assets, with any remaining positions being settled automatically if not closed by that date.
- The French financial watchdog, AMF, had flagged concerns about Bybit's operations without proper registration as a digital asset service provider.
- Bybit's withdrawal aligns with the introduction of Europe's new Markets in Crypto-Assets (MiCA) legislation.
- Despite regulatory hurdles in certain significant markets, Bybit has achieved status as the world's second-largest exchange by trading volume.
Cryptocurrency exchange Bybit announced on August 1, 2024 Bybit is to halt operations in France, citing 'recent regulatory shifts' as the main reason behind this withdrawal, following heightened scrutiny from French regulators along with new EU crypto regulations.
From August 2 onwards, French customers will experience limitations on their Bybit accounts, unable to initiate new trades or purchase further offerings.
By August 13, all remaining trades will be automatically settled, and users will exclusively be able to extract any remaining funds. Bybit aims to return to the French arena in the future once compliant with French legal requirements.
The exchange’s troubles in France These issues are not novel. Back in May 2024, the AMF, the regulatory body in France, issued a notice highlighting Bybit's unauthorized operations as a Digital Asset Service Provider (DASP). Previously, in 2022, Bybit was blacklisted by the AMF over non-compliance concerns.
Bybit's retreat from France mirrors a broader trend of crypto platforms navigating changing regulatory landscapes. This is in response to the EU's new Markets in Crypto-Assets (MiCA) regulation, which sets the standards for crypto services and stablecoin issuers.
Certain aspects of MiCA came into force in June 2024, with the complete set of rules for digital currencies and service providers slated for enforcement starting December 30, 2024.
Regulatory pressures in France extend beyond Bybit, having also ensnared other giants like Binance. In December 2023, the AMF compelled Binance's founder, Changpeng Zhao, to divest ownership of Binance France to align with U.S. sanctions.
Even amid regulatory headwinds, Bybit has significantly bolstered its global presence. Data from CoinGecko shows that as of August 2024, the exchange ranked as the second largest by trading volume, hitting over $5.5 billion on August 1, trailing only Binance.
Bybit's expansion has coincided with its withdrawal from various countries, including France, as regulators clamp down harder. in Canada and the United Kingdom With regulations tightening, Bybit's official site lists territories such as Singapore and Canada among those where operations have ceased. United States , the UK, China, Hong Kong For those in France who used Bybit, the firm's exit means they'll need to scout alternative trading venues for their crypto dealings.
Leading the helm at Blockonomi, the Editor-in-Chief is also the visionary behind Kooc Media, a UK-based digital media entity. An advocate for Open Source, Blockchain, and a free, unbiased internet.
