Bybit, a well-known cryptocurrency exchange, said that it would stop serving French users on August 2. This was a surprising move that shows how strict regulators are becoming.
The decision comes after the Autorité des Marchés Financiers (AMF), France’s financial watchdog, has been putting increasing pressure on the company. Bybit’s activities will be severely curtailed, marking a critical time for the exchange and its French clients.
Restrictions are piling up
French users will face a slew of severe restrictions. Bybit has declared all accounts “close-only,” meaning users will not be able to open new positions or buy things. Bybit wrote an in-depth blog post about how it has shut down a number of services, such as One-click buy, P2P deals, spot dealing, and derivatives trading. Deposits will also be illegal, making only wire transfers legal.
The regulatory noose will become even stricter on August 13, when Bybit will automatically close all open accounts in spot trading, trading bots or derivatives. In addition, all card services connected to the exchange will be closed. French users should send support tickets if they have any issues or questions regarding these major changes.
Historical background and regulatory issues
Bybit isn’t the only company facing legal troubles. Another crypto giant, Binance, saw its founder Changpeng Zhao (aka CZ) relinquish control of Binance France in December 2023 after pressure from the AMF. These cases show that the French cryptocurrency market is subject to strict regulations.
Source: LinkedIn
Despite facing challenges from authorities, Bybit is still a major participant in the global crypto market. Based on the trading count as of August 1, Bybit ranks second among platforms, behind Binance.
Time to pack
Bybit is stepping down as the EU Markets in Crypto Assets (MiCA) regulations come into effect. MiCA wants all European VDA providers to follow the same guidelines. This method encourages new ideas and makes crypto more accessible and safe for investors. These regulations are difficult for trading platforms like Bybit.
The crypto exchange has previously struggled with French law. The lack of Digital Asset Service Providers licenses was one of the obstacles that prevented the exchange from operating in the country, not to mention a ban imposed by the government in 2022.
Main image from Medium, chart from TradingView