Bybit announced on Thursday that French users will be unable to conduct any transactions on the exchange except for withdrawing funds, effective August 13.
Bybit announced on Thursday that it will withdraw from the French market, citing “regulatory developments” as Europe’s long-awaited crypto legislation redefines the way in which companies and individuals should approach the asset class.
According to a statement from Bybit, French users will be unable to conduct transactions on the exchange except for withdrawing any funds that are currently in their accounts, effective August 13.
Users will be unable to add any new positions or purchase any products, as accounts are in a “close-only” mode.
Bybit’s classification in France has been a subject of controversy for an extended period. In May, the AMF, the national financial commission, issued a warning to citizens that Bybit was operating in violation of country regulations and had been blacklisted in 2022 for “non-compliance with current French regulations.”
The AMF reminded individuals that exchanges like Bybit are obligated to register as digital asset service providers (DASPs), as they had not yet done so.
Platforms that are not registered and offer these services in France are considered illicit under French law. At that time, the AMF stated that Bybit was not registered as a DASP.
Bybit stated to Decrypt that it is “dedicated to ensuring a safe and compliant trading environment for its consumers worldwide” and cited its recent successful launch in The Netherlands as evidence of its willingness to collaborate with European regulators.
The European Commission’s introduction of the Markets in Crypto-Assets (MiCA) regulation on September 24, 2020, as part of a broader digital finance bundle, prompted Bybits’ withdrawal from France.
The European Parliament ratified MiCA in April 2023, and it came into force two months later. MiCA establishes guidelines for stablecoin issuers and crypto providers. June of this year marked the implementation of stablecoin regulations, which encompassed rigorous liquidity and capital requirements.
Starting on December 30, 2024, France, in conjunction with 26 other member states, will implement the balance of rules for other cryptocurrencies and service providers. These encompass enhanced consumer protection protocols, anti-money laundering measures, and oversight of marketing communications.
Bybit’s global availability has fluctuated in tandem with the challenges it encountered in France. In 2023, the exchange withdrew from the Canadian and U.K. markets as a result of the industry’s stricter regulations.
Bybit currently identifies the United States, the United Kingdom, China, Hong Kong, Singapore, and Canada as regions that it no longer intends to serve, as indicated in the exchange’s service restricted section on its website.
Also included in the list are Syria, Russia-controlled regions of Ukraine (currently comprising the Crimea, Donetsk, and Luhansk regions), Iran, Uzbekistan, and North Korea.
Bybit is accessible to Chinese citizens who reside in countries that the company serves, in addition to the Netherlands. This is in contrast to the situation in France, where citizens will be unable to utilize services anywhere in the globe.
Bybit has expanded to become the second-largest exchange by trading volume, despite being restricted in important markets, according to CoinGecko data.
On Thursday, it traded over $5.5 billion in volume, falling behind its rival Binance, which traded $11.4 billion.
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