TLDR
- In a recent announcement, Bybit disclosed its plans to leave the French market, pointing to new regulatory pressures as the key reason.
- Starting on August 13th, users in France will have a limited window to only withdraw their funds as any open positions will be automatically closed if not managed beforehand.
- The AMF, France's top financial watchdog, had earlier notified citizens about Bybit operating without the necessary registrations as a digital financial service, leading to the current exit.
- Bybit's move is aligned with the timeline of the European Crypto-Asset Markets regulation coming into effect, marking a shift in the industry norms.
- Despite clampdowns in crucial markets, Bybit has surged ahead becoming the world's second-largest exchange platform by trading volume.
Cryptocurrency exchange Bybit announced on August 1, 2024 Announcing a halt in its French operations, Bybit attributes this to newly emerging regulatory pressures. This step follows heightened monitoring by French authorities and the new EU crypto guidelines.
From August 2, French users will face limits on their Bybit accounts, such as restrictions on opening new positions or acquiring certain products.
By August 13, any positions that remain open will undergo automatic liquidation, with users still able to withdraw their reserves. Bybit remains optimistic about returning once it meets the necessary legal requirements.
The exchange’s troubles in France This isn't the first bump in the road; come May 2024, France's financial authority, AMF, had already alerted citizens to Bybit's non-registered operations, having earlier put Bybit on a blacklist.
Bybit exiting France forms part of a broader scenario where crypto exchanges must change strategies per regulatory adjustments. This is part of the larger EU 'Markets in Crypto-Assets' regulation impacting digital service rules.
Some parts of the MiCA ruling became enforceable in June 2024, while the remainder awaits execution come December 30, 2024, applying to both digital coin creations and their service providers.
Bybit isn't alone in grappling with regulations in France; major exchanges like Binance have also faced regulatory probes by French officials. In December 2023, pressure led Binance's founder to divest control of its French arm to stay compliant with cross-border sanctions.
Despite regulatory hurdles, Bybit has seen phenomenal growth, scaling to become the second largest exchange globally by trade volume as of August 2024, hitting $5.5 billion on one day, just behind Binance.
Yet, parallel to its global ascent, Bybit has been compelled to retract from several markets, including, notably, France. in Canada and the United Kingdom Stricter rules led to Bybit's web portal updating its listings, showing it no longer conducts operations in locations like Singapore and Canada as well. United States , the UK, China, Hong Kong French traders using Bybit will now need to scout for alternative exchanges to continue their digital currency ventures.
Blockonomi's Editor-in-Chief and Kooc Media founder speaks on upholding open-source, blockchain integrity, and safeguarding an equitable Internet landscape.
