ByBit has announced its departure from France due to “recent regulator developments” from France’s financial regulator, the Autorité des Marchés Financiers (AMF).
Starting August 2, French users will only be able to close their existing positions on ByBit. Any attempts to open new trades or deposit more funds into their accounts will be declined.
ByBit has set a deadline of August 13 for French users to close all their positions. Any positions still open by that date will be automatically closed. Additionally, ByBit will suspend its card services for French customers, however, they will still be able to withdraw any remaining funds from their accounts.
This decision follows a warning from the AMF on May 16, informing French residents that ByBit has been on France’s blacklist since 2022. The AMF stated that ByBit failed to register as a Digital Asset Services Provider (DASP), which is required by French law. They warned investors about the risks of using ByBit.
Despite these changes, ByBit has expressed its intention to return to the French market in the future once it secures the necessary regulatory licenses under French law.
ByBit’s move to stop operations in France follows the ongoing regulatory challenges faced by cryptocurrency exchanges around the world. Recently, ByBit has grown significantly, even surpassing Coinbase to become the second-largest exchange by trading volume. This growth happened while Binance, the largest crypto exchange, dealt with regulatory issues, including those from the AMF.
The AMF also took legal action against Binance. In December 2023, during legal troubles faced by Binance founder Changpeng Zhao in the United States, the AMF forced Zhao to give up ownership of Binance France. The exchange was then managed by two founding members of Binance to ensure compliance with US sanctions and French regulations.
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