AMF Warns Bybit for Operating Digital Asset Services

As an analyst with a background in financial regulation, I strongly believe that Bybit’s ongoing regulatory issues in France are a cause for concern. The Autorité des Marchés Financiers (AMF) has made it clear that the exchange is not authorized to operate in the country due to its failure to register as a digital asset service provider (DASP).

The Autorité des Marchés Financials (AMF) in France has announced that Bybit is not authorized to conduct business within their jurisdiction. This comes as a surprise, given that Bybit has recently surpassed the 20 million user mark globally over the past five years.

Bybit, which was previously barred from operating in France due to regulatory issues two years ago, is currently facing challenges in complying with French laws. The French financial markets regulator, Autorité des Marchés Financiers (AMF), emphasizes the necessity for digital asset service providers (DASPs) to register before commencing business in France. However, Bybit has yet to comply with this requirement.

As a researcher studying the regulatory landscape of cryptocurrency trading platforms, I’d like to remind you that BYBIT’s crypto trading platform is on the French Autorité des Marchés Financiers (AMF) blacklist. This means that it is not authorized to provide services related to digital assets in France. The AMF retains the right to request a court order to block the site.

— AMF (@AMF_actu) May 16, 2024

In reply, Bybit announced its intention to withdraw from the French market by October 2023 while maintaining a commitment to abide by local regulations. Simultaneously, the exchange is engaged in talks with the AMF for required licenses, signaling its strong emphasis on regulatory adherence.

Despite lacking formal registration, Bybit’s activities are considered unlawful under French legislation. The Autorité des Marchés Financiers (AMF) has warned of possible legal proceedings to restrict access to the platform within France.

The Autorité des Marchés Financiers (AMF) strives to uphold public order in financial markets and shield investors through stringent regulations. Some of these rules cover preventing money laundering and terrorist financing, evaluating the capability and honesty of corporate heads, and instating safeguards for individual investors. Bybyt’s decision not to register as a Designated Authorized Primary Market Participant (DASP) goes against these standards, potentially leading to legal repercussions and damaging market confidence.

The French financial markets regulator, AMF, urges investors to anticipate potential interruptions in Bybit’s services and acknowledges the risks linked to unregistered digital asset platforms. In addition, the AMF recommends investors consult its list of authorized digital asset service providers (DASPs) on their website before investing in cryptocurrencies. This precautionary measure by the AMF highlights their dedication to securing investor protection within the unpredictable crypto market.

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2024-05-16 23:33