Recently, crypto exchange Bybit announced that it would be terminating its services in France due to regulatory issues. The French regulator introduced new developments that Bybit struggled to comply with, particularly in terms of licensing requirements. This move left French users disappointed and unable to access Bybit’s platform.
The French Financial Market Authority (AMF) previously warned investors in France about Bybit’s lack of registration in the country. This lack of regulatory approval raised concerns, leading the regulator to consider legal action against the exchange. As a result, Bybit had to restrict all French accounts to “Close-Only” mode, prohibiting users from engaging in various activities on the platform.
Starting from August 2nd, Bybit began implementing restrictions on its services for French users. This included preventing users from opening new positions, purchasing products, or making deposits on the platform. Furthermore, Bybit announced that it would liquidate all remaining open positions and suspend card services by August 13th, allowing users only to withdraw their assets and funds.
MiCA Regulations and Industry Impact
Bybit’s decision to cease operations in France coincides with broader regulatory changes in Europe, particularly the upcoming Markets in Crypto-Assets (MiCA) regulations. These regulations, established by the European Union, aim to standardize crypto regulations across member states. While some exchanges like Coinbase, OKX, and Gemini have managed to secure the necessary licensing, others like Bybit have faced challenges in meeting regulatory requirements.
Overall, the case of Bybit in France highlights the growing impact of regulatory changes on crypto exchanges. As governments and regulators worldwide seek to establish clearer guidelines and oversight in the crypto industry, exchanges must navigate complex legal landscapes to ensure compliance. Bybit’s experience serves as a cautionary tale for other exchanges operating in similar regulatory environments, emphasizing the importance of proactive regulatory engagement and risk management strategies to avoid disruptions in service and comply with evolving legal frameworks.
