Bybit announced it will cease operations for French users starting August 2. This decision comes in response to increasing regulatory scrutiny from France’s financial regulator, the Autorité des Marchés Financiers, the AMF.
No more service for French users
Bybit’s French users will now face restrictions as the exchange has set all accounts to close-only mode.
This means users can no longer open new positions or make purchases.
Bybit detailed these changes in a blog post, stating that services like One-click buy, peer-to-peer transactions, spot trading, and also derivatives trading will be discontinued.
Deposits will be banned, and users will only be able to withdraw funds.
Starting August 13, Bybit will automatically close any active accounts involved in spot trading, trading bots, or derivative products.
Next to this, all card services linked to the exchange will be terminated. Bybit advised French users to contact customer support with any questions or issues regarding these changes.
Land of Bordeaux, not land of Bybit
Bybit is not the only exchange facing regulatory challenges in France. Binance, another major cryptocurrency exchange, also encountered issues.
In December 2023, Binance’s founder, Changpeng Zhao, resigned from Binance France under pressure from the AMF, reflecting the strict regulatory environment in France’s crypto market.
Despite these hurdles, Bybit remains a top player globally, ranking as the second-largest exchange by trading volume as of August 1, just behind Binance.
MiCA regulations, for our safety
Bybit’s exit from France coincides with the implementation of the European Union’s Markets in Crypto Assets, the infamous MiCA regulations.
These regulations want to standardize rules for Virtual Asset Service Providers across Europe, promoting innovation while ensuring investor safety.
They also present challenges for platforms like Bybit, which have struggled with French regulatory requirements.
Bybit previously faced difficulties in obtaining Digital Asset Service Provider permits necessary for legal operation in France.
The French government banned the exchange in 2022, further complicating its ability to function.
