Popular cryptocurrency exchange ByBit has announced it will cease operations in France and restrict account features for French users, according to an August 1 press release. ByBit attributed this decision to “recent regulatory developments” by France’s financial regulator, the Autorité des Marchés Financiers (AMF).
Starting August 2, French users will have their accounts set to a “close-only” configuration, preventing new positions from being opened or new funds from being deposited. From August 13, all remaining positions will be automatically liquidated, and card services will be suspended. French clients will still have the option to withdraw any remaining funds from their ByBit accounts.
ByBit concluded by expressing its hope to return to the French market once it secures the proper regulatory licenses under French law.
Regulatory Issues with the AMF
The AMF issued a warning to French residents on May 16, reminding them that ByBit has been blacklisted in the country since 2022. The AMF claimed that ByBit failed to register as a Digital Asset Services Provider (DASP) and cautioned investors that the site could be shut down at any time.
Despite these regulatory hurdles, ByBit has seen significant growth. In June, ByBit surpassed Coinbase to become the world’s second-largest exchange by trading volume, gaining market share from Binance, which faces ongoing regulatory challenges globally.
France’s AMF also targeted Binance in December 2023, amid founder Changpeng Zhao’s legal battle in the United States. The regulator forced Zhao to relinquish ownership of Binance France to shareholders with equal stakes in the company. According to Binance France, the two new shareholders were also founding members of the Binance exchange.
Key Implications for ByBit Users in France
For ByBit users in France, the announcement carries several important implications:
- Immediate action is required to close open positions by August 13, 2024.
- All trading activities will be halted, including Spot and Derivative trading.
- Deposits to ByBit accounts will no longer be accepted.
- Users should transfer their assets from ByBit to other exchanges or wallets.
These steps are crucial for safeguarding investments and ensuring the smooth transition of assets.
Global Regulatory Challenges
ByBit’s decision to halt services in France underscores the growing regulatory challenges faced by cryptocurrency exchanges worldwide. Users must adapt quickly to these changes to protect their investments. ByBit has expressed its intention to return to the French market in the future once it secures the necessary regulatory licenses under French law.
The growing scrutiny from regulators like the AMF highlights the increasingly complex landscape that cryptocurrency exchanges must navigate. The developments in France are a part of a broader trend affecting the global operations of major exchanges like ByBit and Binance. As the industry matures, compliance with regional regulations becomes increasingly critical for the sustained growth and stability of these platforms.
