As an analyst with over two decades of experience in the financial industry, I’ve seen my fair share of regulatory challenges and market evolutions. The recent decision by ByBit to cease operations in France is not surprising, given the growing scrutiny on cryptocurrency exchanges worldwide.
As a researcher, I’ve recently observed that ByBit has chosen to withdraw its services from France. This decision appears to be prompted by the evolving regulatory landscape in France, specifically the actions taken by the Autorité des Marchés Financiers (AMF), the country’s financial regulator.
Commencing August 2, French residents can no longer create new trades or add funds to their accounts on ByBit. Existing positions can only be closed down.
ByBit requires all French users to settle all their active trades no later than August 13. Any positions left uncancelled after this date will be terminated automatically. Moreover, ByBit is going to temporarily halt its card services for French clients; however, they’ll still have the option to withdraw any leftover funds from their accounts.
After a warning from the AMF on May 16, it was made clear to French residents that ByBit has been on a watchlist since 2022. The AMF explained that ByBit had not complied with the legal requirement to register as a Digital Asset Services Provider (DASP). They urged investors to be aware of the potential risks when using ByBit.
In spite of recent alterations, ByBit plans to re-enter the French market in due time, provided they obtain the required legal permits for operation within France.
ByBit’s decision to halt its services in France is due to persistent regulatory hurdles that cryptocurrency platforms encounter globally. Notably, ByBit has experienced remarkable expansion, recently outpacing Coinbase to rank as the second-largest exchange by trading volume. This growth transpired amidst Binance, the largest crypto exchange, grappling with regulatory matters, such as those from the AMF.
In December 2023, the AMF (Autorité des Marchés Financiers) took legal steps against Binance, leading Changpeng Zhao, the founder of Binance, to relinquish control over Binance France amidst his legal issues in the U.S. The exchange was subsequently taken over by two original Binance members to adhere to both U.S. sanctions and French regulations.
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2024-08-02 03:49