Bybit, a popular crypto exchange, recently announced that it will be discontinuing its services in France due to regulatory concerns. The company stated that it has always strived to operate within the boundaries of the law and in compliance with regulations. However, in response to recent regulatory developments in France, Bybit will no longer be offering its products and services to French nationals and residents.
Starting from August 2nd, users in France will no longer be able to make purchases on Bybit or add to their existing positions. Additionally, all deposits to French users’ accounts will be restricted. Bybit has advised its French users to close all open positions, withdraw their assets, and funds from their accounts.
The French financial regulator, Autorité des Marchés Financiers (AMF), had previously issued a warning about Bybit, stating that the exchange was not authorized to provide its services in France and had been blacklisted since May 2022. In order to operate in France, companies are required to obtain a digital asset service provider license, which Bybit does not possess.
France is one of the many European Union countries that have implemented the Markets in Crypto Asset (MiCA) regime, which mandates that firms must have an office and be registered with an EU nation to be eligible for MiCA approval. A single Crypto Asset Service Provider license under MiCA allows a company to cater to clients across Europe.
It is important to note that CoinDesk, the media outlet reporting on this news, follows strict editorial policies and was acquired by the Bullish group in November 2023. The Bullish group, majority-owned by Block.one, holds interests in various blockchain and digital asset businesses. Camomile Shumba, the regulatory reporter covering this story, does not currently hold any digital currencies or projects.
This move by Bybit to withdraw from France underscores the challenges that crypto exchanges face in navigating regulatory landscapes around the world. As the crypto industry continues to evolve, compliance with regulations will be crucial for exchanges to maintain operations in different jurisdictions. French users of Bybit will need to take the necessary steps to wind down their activities on the platform and withdraw their assets before the August deadline.