Crypto exchange Bybit recently announced that it will be ending its operations in France due to regulatory issues. The exchange cited new regulatory developments from the French authority as the reason for this decision, specifically hinting at licensing problems. Bybit expressed optimism about returning to the French market once it obtains the necessary licenses.
The French Financial Market Authority (AMF) had previously warned French crypto investors about Bybit’s unregistered status in the country. As a result, the regulator had threatened legal action against the exchange. Effective August 2nd, Bybit will transition all French accounts to “Close-Only” mode, preventing users from engaging in new trades, product purchases, or deposits. This restriction applies to all Bybit services, signaling a significant operational shift for the exchange in the French market.
Bybit is set to liquidate all remaining open positions and suspend card services on August 13th. Following this date, users will only be able to withdraw their assets and funds from the platform. This move aligns with broader regulatory changes in Europe, particularly with the impending implementation of the Markets in Crypto-Assets (MiCA) regulations. MiCA, established by the European Union, aims to standardize crypto regulations among member states. Notably, exchanges like Coinbase, OKX, and Gemini have already obtained the necessary licenses to operate within the region.
Bybit’s retreat from the French market underscores the challenges posed by evolving regulatory landscapes for crypto exchanges. The need to secure proper licensing and comply with regulatory requirements is becoming increasingly vital in the industry. This development serves as a reminder of the importance of regulatory adherence and the potential consequences for non-compliance. As the regulatory environment continues to evolve, exchanges must adapt to ensure ongoing compliance and operational sustainability.
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