Key Points:
- Bybit, a major cryptocurrency exchange, has halted its operations in France starting August 1, 2024.
- The halt is due to recent regulatory developments by the Autorité des Marchés Financiers (AMF).
- French users will face account restrictions, limiting them to “close-only” settings from August 2.
- All open positions will be automatically liquidated by August 13, and withdrawal options will remain available.
- Bybit aims to re-enter the French market with proper regulatory licensing in the future.
Introduction
Bybit, a leading cryptocurrency exchange, has announced the suspension of its operations in France starting August 1, 2024. This decision comes in response to recent regulatory changes enforced by the French financial regulator, the Autorité des Marchés Financiers (AMF).
Details of Bybit’s Operational Halt
Effective August 2, 2024, Bybit will restrict French users’ accounts to “close-only” settings. This means users will not be able to open new positions or deposit new funds. By August 13, all open positions will be automatically liquidated, and the option to withdraw remaining funds will be provided to the users. This regulatory action follows Bybit’s failure to register as a Digital Asset Service Provider (DASP) in France.
Regulatory Background and AMF’s Stance
The AMF has maintained a stringent stance on cryptocurrency exchanges operating without proper registration. Bybit has been on the AMF’s blacklist since 2022, and the regulator reissued warnings to French investors in May 2024 about potential operational halts.
Bybit’s Future Plans
Despite the current halt, Bybit has expressed its intention to resume operations in France. The exchange aims to comply with local regulations and secure appropriate licenses to ensure a smooth re-entry into the French market. This move aligns with Bybit’s broader strategy to adhere to regulatory frameworks in various jurisdictions worldwide.
Market Impact and Industry Response
Bybit’s suspension in France highlights the increasing regulatory scrutiny faced by cryptocurrency exchanges globally. Other major exchanges, like Binance, have also encountered similar regulatory challenges in different countries. The industry’s response underscores the need for robust regulatory compliance and adaptive business strategies to navigate the evolving regulatory landscape.
Bybit’s halt in French operations marks a significant development in the cryptocurrency regulatory environment. As regulatory bodies worldwide tighten their oversight, exchanges must prioritize compliance to maintain market presence and investor trust. Bybit’s commitment to re-entering the French market with proper licensing reflects the industry’s ongoing efforts to align with regulatory expectations and ensure sustainable growth.
