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AMF Issues Renewed Warning
France's securities regulator, the Autorité des Marchés Financiers (AMF), has renewed its warning against the crypto exchange Bybit. The AMF urges customers to prepare for the possibility that Bybit may abruptly cease providing services in France.
According to the regulator, Bybit is not registered as a digital asset service provider (DASP) and is therefore operating illegally in the country.
In a notice released on Thursday, the AMF stated that Bybit has been blacklisted since May 20, 2022, for offering its services without proper registration.
The regulator emphasized that under French law, digital asset service providers must register with the AMF before operating. This registration is crucial for maintaining public order, preventing money laundering and terrorist financing, verifying the competence and reputation of directors, and protecting retail investors.
The AMF's warning hints at possible enforcement actions against Bybit. The regulator reminded investors that it reserves the right to take legal action to block Bybit’s website in France.
Retail investors are advised to take all necessary measures to avoid being unable to access their assets if the platform ceases operations.
Bybit's Response and Compliance Efforts
Representatives of Bybit stated that they have been working closely with the AMF and are in the process of seeking a license.
To ensure full compliance with local regulations, the company decided to exit the French market in 2023. Despite this, the AMF's warning remains in place, highlighting the ongoing concerns about Bybit's legal status in France.
AMF warned about another cryptocurrency exchange, Bitget, over a month ago. This pattern of warnings underscores the regulator's strict stance on unregistered crypto platforms operating in France.
Global Scrutiny and Bybit's Performance
Bybit has faced scrutiny from other regulators as well. Two months ago, Hong Kong's Securities and Futures Commission (SFC) warned investors about Bybit's lack of licensing and flagged several of its products as suspicious investments.
Despite these challenges, Bybit continues to perform well in other regions. In May, the exchange launched Bybit P2P Shield, a program designed to enhance security and trust in its peer-to-peer trading platform.