- Bybit is suspending its operations in France due to recent regulatory changes by the AMF, impacting French users with a “close-only” mode for their accounts
- From August 13, French users will not be able to open new positions or deposit funds, and existing positions will be liquidated if not closed
- Bybit and other major exchanges like Binance are facing increasing scrutiny from French regulators, which is reshaping the landscape for crypto trading in the country
On August 1, the cryptocurrency exchange Bybit announced that it’s suspending its operations in France because of new requirements from the Autorité des Marchés Financiers (AMF).
French users will see their accounts limited to a “close-only” mode starting August 13. This means they won’t be able to open new positions or deposit funds.
Bybit Suspends Operations in France Due to Regulatory Changes
In a press release on August 1, Bybit, the well-known cryptocurrency exchange, announced that it’s halting operations in France and limiting some features for French users. The company said that it had to suspend operations in the European country because of “recent regulatory developments” from the AMF.
Bybit sent a heads-up to French users that their accounts will be in “close-only” mode, which means they can’t open new positions or deposit funds into Bybit’s services and products.
All open positions will be automatically liquidated as of Aug. 13. Additionally, French customers won’t have debit card service. They’ll still be able to withdraw any remaining funds from their Bybit accounts.
French Regulators Crack Down on Bybit and Binance
Bybit concluded its announcement by stating that the company plans to return to the French market in the future, once it has obtained the necessary regulatory licenses.
The AMF said that the exchange hadn’t registered as a Digital Asset Services Provider (DASP), so there’s a chance the platform could shut down at any time.
In June, Bybit surpassed Coinbase, becoming the second-largest exchange in the world by trading volume, also impacting Binance’s market share due to global regulatory issues facing the company.
Back in December 2023, the AMF got involved in a legal battle involving Binance and its founder, Changpeng Zhao. The French financial authority wanted to make sure that Binance was complying with U.S. sanctions, so they gave Zhao an ultimatum. The result was that Zhao had to transfer ownership of Binance France to shareholders with an equal stake in the company.
According to Binance France, the two new shareholders taking over the company were two of Binance’s founding members.
Conclusions
To sum up, Bybit is pausing its operations in France because of new regulations that are changing the crypto landscape.
French users will have limited access to their accounts, which is a reflection of the growing challenges crypto platforms face in adhering to local regulations.
Given the AMF’s actions against Binance and the ongoing market changes, the big question is whether Bybit will be able to re-enter France once it meets all the regulatory requirements.
