TLDR
- Bybit announced it will exit the French market on August 13, 2024.
- French users will only be able to withdraw funds after this date.
- The French regulator AMF had previously warned that Bybit was operating without proper registration.
- Bybit cited regulatory developments, likely related to the EU’s MiCA regulations, as the reason for exit.
- Bybit has faced similar regulatory challenges in other countries like the UK and Canada.
Bybit, one of the world’s largest cryptocurrency exchanges by trading volume, has announced its withdrawal from the French market.
The company cited “regulatory developments” as the primary reason for this decision, which will take effect on August 13, 2024.
According to Bybit’s official statement, French users will no longer be able to conduct transactions on the platform after the specified date, except for withdrawing their existing funds.
The exchange has implemented a “close-only” mode for French accounts, preventing users from adding new positions or purchasing any products.
This move comes in the wake of increased regulatory scrutiny in France. In May, the Autorité des Marchés Financiers (AMF), France’s national financial commission, issued a warning to citizens about Bybit’s operations.
The AMF stated that Bybit was operating outside of country regulations and had been blacklisted in 2022 for “non-compliance with current French regulations.”
The AMF emphasized that exchanges like Bybit are required to register as digital asset service providers (DASPs) in France, which Bybit had not done.
“Unregistered platforms providing these services in France are illegal under French law. Bybit is not registered as a DASP,” the AMF said at the time.
Bybit’s decision to exit the French market aligns with the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation.
MiCA, introduced by the European Commission in September 2020, sets guidelines for crypto providers and stablecoin issuers.
While some provisions of MiCA took effect in June 2024, France and 26 other EU member states will implement the remaining provisions for cryptocurrencies and service providers starting December 30, 2024.
This is not the first time Bybit has faced regulatory challenges. In 2023, the exchange exited the Canadian and UK markets due to tightening rules aimed at the cryptocurrency industry.
Bybit’s website currently lists several countries and regions where its services are restricted, including the United States, China, Hong Kong, Singapore, and Canada.
Despite these setbacks, Bybit has managed to grow significantly. It is now the second-largest exchange by trading volume, according to data from CoinGecko.
On August 2, 2024, Bybit reported over $5.5 billion in trading volume, second only to Binance’s $11.4 billion.
Bybit has expressed its intention to return to the French market in the future, stating,
“We look forward to serving you again in the near future once the appropriate licenses allowing us to do so have been secured.”
The company also pointed to its recent successful launch in The Netherlands as evidence of its willingness to engage with European regulators.
For now, French Bybit users are urged to close all positions and withdraw their funds before the August 13 deadline.
After this date, Bybit will liquidate all remaining open positions across all products, including derivative and spot products, trading bots, copy trading, Bybit Card, and Bybit Earn products.
