Recently, France’s Autorité des Marchés Financiers (AMF) issued a warning to French crypto investors regarding the Bybit platform. The AMF stated that Bybit is not a registered platform in the country and urged retail investors to be cautious when considering investment proposals from the platform.
Bybit, being the third-largest crypto exchange by trading volume according to CoinMarketCap, was launched in 2017 and currently holds over $10 billion worth of its users’ assets. However, the regulator highlighted that Bybit failed to comply with local regulations, specifically regarding the requirement to register as a digital asset service provider under the Monetary and Financial Code.
Since May 20, 2022, Bybit has been on the AMF’s blacklist due to its non-compliance with regulatory standards. As a result, the AMF warned that legal action might be pursued against Bybit for not registering as required. This could potentially lead to actions like blocking access to the platform’s website and implementing other measures to ensure investor protection.
In response to the regulatory crackdown, the AMF advised investors to consider alternative ways to safeguard their assets in case Bybit faces sudden cessation of operations in France. The AMF emphasized that all investors who have invested on the platform should take necessary precautions to prevent any difficulties accessing their assets in the future.
As of now, Bybit has not responded to requests for comment from CryptoSlate regarding the AMF’s warning. This lack of response raises concerns among investors about the platform’s commitment to addressing regulatory issues and complying with local laws in various jurisdictions.
The AMF’s warning against Bybit is part of France’s broader efforts to establish comprehensive regulations for crypto businesses operating within the country. These actions aim to protect investors from potential risks associated with the rapidly evolving crypto industry, demonstrating a commitment to ensuring financial market stability and investor protection.
Overall, the AMF’s cautionary message serves as a reminder to investors to exercise diligence and caution when dealing with unregistered platforms like Bybit, and to stay informed about regulatory developments in the crypto sector to make informed investment decisions.