Bybit Exits French Market Amid Regulatory Pressures, Urges Users to Close Positions
Cryptocurrency exchange Bybit has announced its decision to cease operations in France, citing recent regulatory developments in the country. The move comes as European Union member states, including France, prepare to implement the Markets in Crypto-Assets (MiCA) regulation, which aims to establish a comprehensive framework for digital assets across the EU.
Effective August 2, 2024, at 08:00 UTC, Bybit will restrict French users’ accounts to a “Close-Only” mode. This means that French nationals and residents will no longer be able to open new positions, add to existing ones, or purchase any products across Bybit’s suite of services. These restrictions apply to all Bybit offerings, including spot and derivative trading, copy trading, Bybit Card, and Bybit Earn products.
The exchange has urged its French clientele to wind down their activities and withdraw their assets from the platform. Any remaining open positions across all products will be automatically liquidated on August 13, 2024, at 08:00 UTC. After this date, French users will only be able to withdraw funds from their accounts.
Bybit’s decision follows a warning issued by France’s financial regulator, the Autorité des Marchés Financiers (AMF), in May 2024. The AMF reminded French citizens that Bybit had been blacklisted since 2022 for operating without proper registration as a Digital Asset Services Provider (DASP). Under French law, crypto exchanges are required to register as DASPs to operate legally within the country.
The exchange stated in its announcement, “It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations.” Bybit also expressed hope for a future return to the French market, saying, “We look forward to serving you again in the near future once the appropriate licenses allowing us to do so have been secured.”
This development is part of a broader trend of increased regulatory scrutiny on cryptocurrency exchanges across Europe and globally. As the EU prepares for the full implementation of MiCA in December 2024, crypto firms are facing stricter requirements to operate within the bloc.
Despite the setback in France, Bybit remains a significant player in the global cryptocurrency market. Block’s data shows that the exchange handled $134.65 billion in trading volume in July 2024, representing 12% of the total volume across all crypto exchanges.
