Bybit announced Thursday that it would exit the French market, citing “regulatory developments” as long-awaited European legislation on cryptocurrencies reshapes how companies and individuals should treat the asset class.
Starting August 13, French users will no longer be able to make transactions on the exchange except to withdraw funds they already have in their account, Bybit said in a statement.
Accounts are limited to a “close only” mode, meaning users will not be able to add new positions or purchase products.
Bybit’s status in France has long been controversial. In May, the national financial commission, the AMF, informed citizens that Bybit was operating outside the country’s regulations and had been blacklisted in 2022 for “non-compliance with current French regulations.”
The AMF recalled that exchanges like Bybit are required to register as a digital asset service provider (DASP), which Bybit had not done.
“Unregistered platforms providing these services in France are illegal under French law. Bybit is not registered as a PSAN,” the AMF said at the time.
Bybit said Decrypt It is committed to providing a safe and compliant trading environment for its users worldwide and highlighted its recent successful launch in the Netherlands as evidence of its willingness to engage with European regulators.
Bybits’ withdrawal from France follows the implementation of the European Markets in Crypto-Assets (MiCA) regulation, introduced by the European Commission on 24 September 2020, as part of a broader set of digital financial measures.
MiCA, which sets out guidelines for cryptocurrency providers and stablecoin issuers, was subsequently ratified by the European Parliament in April 2023 before coming into force two months later. The rules for stablecoins, including strict capital and liquidity requirements, came into force in June this year.
France, like 26 other member states, will implement the remaining provisions for other cryptocurrencies and service providers from December 30, 2024. These include oversight of marketing communications, anti-money laundering measures and enhanced consumer protection protocols.
Bybit’s global availability has fluctuated alongside the difficulties it previously faced in France. The exchange exited the Canadian and British markets in 2023 due to tightening rules targeting the sector.
According to the exchange’s restricted service section on its website, Bybit currently lists the United States, United Kingdom, China, Hong Kong, Singapore, and Canada as areas in which it no longer intends to serve.
North Korea, Cuba, Iran, Uzbekistan, Russian-controlled regions of Ukraine (currently including Crimea, Donetsk and Luhansk regions) and Syria are also on the list.
In addition to the launch in the Netherlands, Bybit is now available to Chinese citizens abroad in countries where the company has a presence. This differs from the situation in France, where citizens will not be able to access the services everywhere in the world.
Despite its restrictions on key markets, Bybit has become the second-largest exchange by trading volume, according to CoinGecko data.
It lags behind rival Binance, with more than $5.5 billion in volume traded on Thursday compared to Binance’s $11.4 billion.
Edited by Sebastian Sinclair
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