Bybit Halts Operations in France Amid Regulatory Clampdown
The post Bybit Halts Operations in France Amid Regulatory Clampdown appeared first on Coinpedia Fintech News
A major cryptocurrency exchange, Bybit, has announced a halt to its services in the French market. Starting August 2, it will cease their operations for the French nationals. It took the closure decision due to recent regulatory developments and stringent regulatory pressures from the Autorité des Marchés Financiers (AMF). Lets explore what it means for Bybit and its French users.
Limited Service Access for Bybit Users
Starting August 2, the French Bybit users will face several restrictions to their trading account. They will not be able to open new positions or purchase any products.Bybit has marked all French users accounts as close-only. This will prevent any kind of new trade activity. In its announcement blog, the crypto exchange has shared information about its termination of services. According to the update, the exchange will restrict all kinds of product purchases, including One-click buy, P2P, spot, and derivative trading. Users can no longer deposit any funds into their accounts. The only action users can perform is to withdraw their funds. Also, effective August 13, the crypto exchange will automatically liquidate any open positions in derivative products, trading bots, or spot trading. The exchange will also suspend all card services.
If any French users have questions related to this matter, they can submit a support ticket to the Bybit team.
Licencing Challenges
This is not the first time when Bybit has faced regulatory concerns in France. In 2022, the Autorité des Marchés Financiers (AMF) blacklisted this crypto exchange for non-compliance with French Regulations. In May 2024, they issued a warning to French citizens that this exchange was operating as a Digital Asset Service Provider without proper licensing. Bybits exit from the French market follows the implementation of the European Unions Markets in Crypto Assets (MiCA) regulations. This regulation sets guidelines to VDA providers in the European region.
Bybit is not the first exchange to face this as well. In December 2023, Binances founder Changpeng Zhao, commonly known as CZ was forced to relinquish the owner of Binance France by AMF.
Exploring Bybits Future in France
As of August 1, Bybit stands as the second largest crypto exchange in terms of crypto trading volume. Binance is leading the market with $11.4B in trading volume on the first day of August, while Bybit had $5.5 Billion. Despite several regulatory challenges Bybit has witnessed significant growth. However, it had to take exit from multiple countries because of the strict regulations.
Bybit plans to re-enter the French market soon after getting the required licenses. After Bybits exit from french market the users will have to look out for an alternative exchange for their crypto trading activities. The regulatory stance for crypto is very strict in many countries while others are developing frameworks to utilize the crypto power. It would be very interesting to see these regulatory developments globally in the coming times.
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Text source: Coinpedia – Fintech & Cryptocurreny News Media| Cr
