Bitrabo Editorial
Bybit, a prominent cryptocurrency exchange, announced its decision to discontinue services for French users on August 2 in response to increasing scrutiny from regulatory authorities.
The Autorité des Marchés Financiers (AMF), France’s financial regulatory body, has intensified pressure on Bybit, leading to significant operational limitations for the exchange and its French clientele.
Imposition of Stringent Restrictions
French users will face stringent restrictions as Bybit enforces a “close-only” policy, prohibiting the opening of new positions or purchases. Bybit will cease various services, including One-click buy, P2P deals, spot dealing, and derivative trading. Additionally, only transfers will be permitted as deposits will be prohibited.
Further restrictions will be imposed on August 13, when Bybit will automatically close all accounts engaged in spot trading, trading bots, or derivative products. Card services linked to the exchange will also be terminated, with users advised to reach out through support tickets for assistance.
Historical Context and Regulatory Challenges
Bybit joins other industry players like Binance in grappling with legal issues. Binance’s founder, Changpeng Zhao, relinquished control of Binance France in December 2023 under AMF pressure. These incidents underscore the stringent regulatory environment in the French cryptocurrency market.
Despite regulatory hurdles, Bybit remains a key player in the global crypto landscape, ranking second in trade volume behind Binance as of August 1.
Adapting to Regulatory Changes
Bybit is aligning its operations with the EU Markets in Crypto Assets (MiCA) regulations coming into force, aiming to standardize guidelines for all European Virtual Asset Service Providers. While MiCA fosters innovation and enhances investor safety, compliance poses challenges for platforms like Bybit.
The exchange has faced obstacles with French regulations in the past, including the absence of Digital Asset Service Provider licenses and a government-imposed ban in 2022.
Image source: Medium, Chart source: TradingView