Bybit Exits French Market Amid New EU Crypto Regulations
Bybit announces its exit from the French market after the implementation of Europe's Markets in Crypto-Assets (MiCA) regulation. The crypto exchange cited regulatory developments and hinted at difficulties in securing a license. The company has also named other countries it no longer intends to serve, including Canada and the UK.
On May 16, the Autorite des Marches Financiers (AMF) - the national financial commission - warned French residents that Bybit had been blacklisted in 2022. The AMF previously cited non-compliance with current French regulations.'
Bybit's availability has fluctuated globally, along with the difficulties it has faced with French regulators. Read more to find out what's been happening.
Bybit and Its History With French RegulatorsBybit's problems with French regulators stemmed from the fact that all crypto exchanges must register as digital asset service providers (DASPs), which the company had failed to do.However, the exchange tried to reassure people by claiming its success in the Netherlands proved it was willing to work with European regulators. Bybit established its new office in Amsterdam, which was made possible through a partnership with SATOS.
The Co-Founder and CEO of Bybit said, We are committed to providing a safe and secure trading environment for all our users and understand the importance of complying with local regulations.'
Bybit announced it would be pulling out of the French market due to recent regulatory developments' by the AMF.The exchange warned French users that their accounts will be restricted to a close-only' mode beginning on August 2. Users will not be able to:
Open new positions Deposit new funds Purchase any products, including Bybit Earn and all spot products
Any remaining unclosed open positions will be automatically liquidated after August 13. After that, card services will be suspended, and French users will only be able to withdraw funds from their Bybit accounts.
How The MiCA Regulations Have Impacted ByBitBybit to Cease Operations and Withdraw Products from France ! pic.twitter.com/Wr80w5N1Bt
- Ethos Vertical (@EthosVertical) August 2, 2024
Bybit's announcement coincides with Europe's long-awaited crypto legislation, which aims to reshape how companies and individuals treat the asset class.
The exchange's withdrawal from France follows the enactment of the European Union's MiCA regulation framework. It was introduced on September 24, 2020, as part of a digital finance package.
MiCA came into force in June 2023 after being ratified by the European Parliament. Regulations concerning stablecoins, including liquidity requirements and stringent capital, took effect on June 30 this year, with the full Regulation going into full effect this December.
According to CoinGecko, Bybit retains the second-largest exchange title by trading volume. It surpasses HTX and Coinbase despite restrictions in major markets, including the US, the UK, Hong Kong, and China.
Although Bybit will no longer offer its products and services in France for now, the exchange remains positive and tells French users that it looks forward to returning to the market once it has obtained the proper licenses under French law.
Increasing regulatory policies may affect the global cryptocurrency market and cause market volatility. Yet, investors and regulators are still looking for ways to explore cryptocurrency innovations without compromising security and safety.
References- Notice on Discontinuation of Services in France (Bybit announcement)
- Top Crypto Exchanges Ranked by Trust Score (CoinGecko data)
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