Crypto Exchange Bybit to Withdraw from French Market
Bybit announced its decision to pull out of the French market, citing regulatory changes as the driving force behind this move. As Europe’s crypto legislation evolves, companies and individuals are required to adjust their approach to the asset class. From August 13, French users will only be able to withdraw funds from Bybit, with no option to transact further on the platform. This decision comes after the national financial commission (AMF) flagged Bybit for operating outside French regulations, leading to its blacklisting in 2022.
Close-Only Mode for French Users
Accounts on Bybit will be placed in a “close-only” mode, limiting users to closing existing positions without the ability to open new trades or purchase products. The AMF’s requirement for all crypto exchanges to register as Digital Asset Service Providers (DASPs) was not fulfilled by Bybit, making its operations in France illegal under current laws.
Europe’s MiCA Regulation Impact
Bybit’s exit from France follows the introduction of Europe’s Markets in Crypto-Assets (MiCA) regulation, which was officially enforced on June of this year. MiCA mandates guidelines for crypto providers and stablecoin issuers, requiring adherence to stringent capital and liquidity requirements. France, along with other EU member states, is set to implement additional provisions regarding cryptocurrencies and service providers starting December 30, 2024.
- Remaining MiCA provisions include oversight of marketing communications, anti-money laundering measures, and enhanced consumer protection protocols.
Global Compliance Challenges for Bybit
Bybit’s availability in various countries has been subject to regulatory challenges. The exchange previously exited the Canadian and U.K. markets due to regulatory constraints, with current restrictions extending to the U.S., China, Hong Kong, Singapore, and Canada. Bybit also prohibits services to nations like North Korea, Cuba, Iran, Uzbekistan, Russian-controlled regions of Ukraine, and Syria. Despite these limitations, Bybit has emerged as the second-largest exchange by trading volume, trailing only behind Binance in the market.
Bybit’s Resilience and Growth
Despite facing restrictions in key markets, Bybit has demonstrated resilience and growth in the crypto exchange industry. The exchange continues to expand its global presence, evident through its successful launch in The Netherlands, catering to Chinese citizens residing in countries where Bybit operates. Bybit’s trading volume remains substantial, showcasing its competitive position in the market.
Hot Take: Bybit’s Strategic Withdrawal Amid Regulatory Changes
Bybit’s decision to withdraw from the French market reflects the shifting regulatory landscape in Europe, emphasizing the need for crypto companies to adhere to evolving legislation. As regulatory requirements become more stringent, exchanges like Bybit must navigate compliance challenges to maintain their operations and uphold user trust.
By
By
By
By
By