Bybit, a prominent crypto exchange, recently announced the termination of its operations in France due to regulatory challenges. The decision came as a result of new developments from the French regulator, which raised concerns about licensing issues. This move has left Bybit with no choice but to cease its services in the country, much to the disappointment of its French users.
Consequences for French Crypto Investors
The French Financial Market Authority (AMF) had previously warned investors in France about Bybit’s lack of registration. This warning, issued almost three months prior to Bybit’s decision to exit the French market, hinted at potential legal action against the exchange. As of Aug. 2, all French accounts on Bybit will be restricted to “Close-Only” mode, preventing users from engaging in various activities on the platform.
The restrictions placed on French accounts will affect all Bybit services, including One-Click Buy, Bybit Card, P2P trading, spot products, derivatives, copy trading, trading bot, Bybit Earn, and Bybit Structured Products. Additionally, Bybit has announced plans to liquidate all remaining open positions and suspend card services starting Aug. 13. This means that users will only be able to withdraw their assets and funds from the platform after this date.
Bybit’s decision to cease operations in France is not an isolated incident but rather reflects a broader trend of regulatory changes in Europe. The impending Markets in Crypto-Assets (MiCA) regulations, designed to standardize crypto regulations across EU member states, will impact the industry as a whole. While some exchanges like Coinbase, OKX, and Gemini have managed to secure the necessary licenses to continue operating in the region, others are facing similar challenges.
Bybit’s exit from the French market serves as a stark reminder of the regulatory hurdles that crypto exchanges must navigate to remain compliant with local laws. As the regulatory landscape continues to evolve, it is essential for exchanges to stay abreast of any changes and proactively seek the required licenses to avoid disruptions in their services. Only by complying with regulatory requirements can crypto exchanges ensure the long-term sustainability of their operations and maintain the trust of investors.