ByBit Suspends Services in France Due to AMF Compliance Issues

• ByBit halts operations in France due to the lack of AMF’s DASP registration.
• ByBit sets French accounts to close-only mode, leading to forced liquidations by August 13
• EU’s MiCA regulations set for December implementation, aiming to enhance consumer protection in the crypto market

Cryptocurrency exchange ByBit has announced its decision to suspend operations in France. ByBit clarified that this decision aligned with the AMF’s regulations.

The AMF requires Digital Asset Services Provider (DASP) registration to guarantee that exchanges comply with anti-money laundering regulations and provide proper investor protection Failure to get the registration has placed ByBit on the AMF’s blacklist since May 2022

ByBit’s forthcoming restrictions include setting French user accounts to a “close-only” mode, which prohibits opening new positions and depositing funds. This transition precedes the August 13 deadline, after which all remaining open positions will be forcibly liquidated, and card services for French clients will be suspended. Nevertheless, French users can withdraw their funds from the platform.

Implications for French Users

The immediate effect of ByBit’s operational cessation will be that French users will face significant account limitations. Starting August 2, these accounts will be restricted from initiating new trades or adding funds, with a complete cessation of trading activities following shortly after.

Despite these challenges, ByBit remains a significant player in the global crypto market; it recently surpassed Coinbase to become the world’s second-largest exchange by trading volume. Moreover, ByBit’s plan to re-enter the French market once it obtains the required licenses under French law

France and the European Union are developing regulatory frameworks requiring greater openness and compliance from cryptocurrency enterprises. The European Union’s upcoming Markets in Cryptoassets (MiCA) regulations will be implemented in December with an aim to standardise and strengthen consumer protections across the crypto market in Europe.