French regulators are cracking down on crypto exchanges, and Bybit is the latest to feel the pressure. The company announced it will be shutting down its operations in France, effective August 2nd. This comes after a series of warnings and restrictions from the Autorité des Marchés Financiers (AMF), France’s financial watchdog.
Restrictions Tighten
Bybit is implementing a series of restrictions for French users:
- No new positions or purchases: All accounts are now “close-only,” meaning users can only close existing positions and withdraw funds.
- Limited services: Services like one-click buy, P2P trading, spot trading, and derivatives trading are being discontinued.
- No more deposits: Only withdrawals are allowed.
- Automatic account closure: On August 13th, all open accounts for spot trading, trading bots, and derivatives will be automatically closed.
- Card services shutdown: All card services linked to the exchange will be disabled.
Bybit is urging French users to contact them if they have any questions or concerns about these changes.
Regulatory Challenges
Bybit isn’t the only crypto company facing regulatory hurdles in France. Binance, another major exchange, saw its founder, Changpeng Zhao (CZ), relinquish control of Binance France last December due to pressure from the AMF.
These events highlight the strict regulatory environment for crypto in France. Despite the challenges, Bybit remains a significant player in the global crypto market.
EU Regulations and the Future
The upcoming EU Markets in Crypto Assets (MiCA) regulations are also playing a role in Bybit’s decision. MiCA aims to standardize regulations for crypto service providers across Europe, promoting innovation and investor protection.
Bybit has previously faced difficulties complying with French regulations, including a ban in 2022 and a lack of necessary permits. The combination of these factors has ultimately led to their decision to exit the French market.
