May 17, 2024 12:25
Thecryptocurrency exchange Bybit has experienced significant growth over the pastyear and, after five years of operation, has surpassed 20 million users.However, its expansion is not as dynamic in some regions due to localregulatory challenges.
One suchexample is France, where the local financial commission, AMF, blacklisted Bybittwo years ago. Now, the national regulator issued a new warning to retailinvestors about the exchange, reminding of its lack of authorization in thispart of Europe.
The exchange itself also commented on the matter, reminding that it "proactively exited the French market in October 2023."
AMF Reminds: Bybit isBlacklisted in France
UnderFrench law, digital asset service providers (DASPs) must register with the AMFbefore offering services connected to digital assets, including operating a cryptotrading platform.
Thismandatory registration helps maintain public order though prevention of moneylaundering and terrorist financing, to verify the good repute and competence ofits directors, or even to impose specific measures to protect retail investors,the AMF stated.
Bybit,however, has not registered as a DASP and is therefore operating illegally inFrance. The AMF emphasizes that unregistered platforms providing these servicesviolate French law.
Representatives of Bybit, on the other hand, stated that they "had been working very closely with the AMF and were in the process of seeking a license." Wanting to ensure full compliance with local regulations, the company decided to exit the local market in 2023.
The AMF issued a similar warning against another well-performing cryptocurrency exchange, Bitget, over a month ago. The warning closelyresembles the one concerning Bybit.
AMF Considers LegalAction, Urges Investor Caution
In addition,the AMF reserves the right to take legal action to block the platform'swebsite in France. The regulator is urging French retail investors who haveinvested through Bybit to take necessary measures to avoid losing access totheir assets.
Allinvestors must make arrangements for the eventuality that the platform suddenlyceases to provide services to the public residing in France.
The AMFreminds investors to consult its whitelist of registered DASPs on its website before investing in cryptocurrencies or related assets.
Two monthsago, Bybit also came under scrutiny from another regulator, Hong Kong'sSecurities and Futures Commission (SFC). The SFC warned investorsabout Bybit and several of its offerings, highlighting the cryptocurrencyexchange's lack of licensing and cautioning about the risks of engaging withthe firm. The regulator flagged 11 of Bybit's products as suspiciousinvestments, raising concerns about potential risks to investors.
Second Biggest in Crypto Spot Volumes
However, the exchange appears to be performing well in other regions and continues tointroduce new features. In May, Bybit announced the launch of Bybit P2P Shield,a program designed to enhance user security and trust in its peer-to-peer (P2P)trading platform.
Additionally,Bybit has introduced a new feature to improve the user experience forcrypto purchases. By integrating Google Pay, Bybit is offering a streamlinedapproach to acquiring digital assets, signaling a shift in the landscape ofcryptocurrency transactions.
It is also worth noting that, according to the Finance Magnates Intelligence benchmark, Bybit ranked second among the largest cryptocurrency platforms in terms of spot trading volumes in April.
Bybit's volume in April 2024 reached $138 billion, a sixfold increase compared to the same month the previous year.
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
