ByBit announced its departure from France due to regulatory actions by French authorities. French users’ accounts will be restricted to “close-only” mode, with all positions required to be closed and assets withdrawn by Aug. 13. ByBit will no longer offer services to French nationals and residents, and card services for French clients will be suspended. The company plans to re-enter the French market once it obtains the necessary regulatory licenses. The Autorité des Marchés Financiers (AMF) in France had warned investors against trading on ByBit in May due to regulatory non-compliance, resulting in the exchange being added to the AMF’s blacklist on May 20, 2022.
In addition to facing scrutiny in France, ByBit was also added to Hong Kong’s list of suspicious exchanges in March. The Securities and Futures Commission (SFC) warned investors about the risks associated with ByBit’s products and stated its readiness to take enforcement action if necessary. ByBit had not obtained a digital asset service provider (DASP) license in France, leading to its unauthorized offering of digital asset services in the country. This non-compliance with existing regulations prompted the AMF to take legal measures to block access to the platform’s website and deem its operations illegal under French law.
ByBit’s decision to leave France comes after facing regulatory pressure and warnings from authorities in multiple jurisdictions. French users are being instructed to close all open positions and withdraw their assets by Aug. 13, with accounts being restricted to “close-only” mode starting Aug. 2. ByBit’s suspension of services for French clients includes card services, while they will still have the option to withdraw remaining funds from their ByBit accounts. The company’s intention to re-enter the French market once regulatory licenses are obtained indicates a commitment to compliance and future operations in the region.
The AMF’s actions against ByBit and its addition to France’s and Hong Kong’s list of suspicious exchanges highlight the importance of regulatory compliance in the cryptocurrency industry. ByBit’s unauthorized offering of digital asset services in France and non-compliance with existing regulations led to its blacklisting by the AMF, underscoring the consequences of operating without the necessary licenses. The company’s decision to exit the French market reflects a response to regulatory pressures and a commitment to regulatory compliance in the jurisdictions where it operates. ByBit’s inclusion on multiple authorities’ lists of suspicious exchanges serves as a cautionary tale for other platforms in the industry.
The AMF’s warning against ByBit in May and subsequent actions taken by French authorities demonstrate the regulatory challenges faced by cryptocurrency exchanges operating globally. ByBit’s departure from France and suspension of services for French users indicate the impact of regulatory actions on the company’s operations and its commitment to complying with local laws. The company’s plans to re-enter the French market upon obtaining regulatory licenses suggest a willingness to work within the regulatory framework and resume operations in the region. ByBit’s experience with regulatory scrutiny in France and Hong Kong serves as a reminder of the importance of compliance and the potential consequences for exchanges that fail to meet regulatory requirements.
