Bybit Exits France Amid Increasing Regulatory Pressure

Japanese cryptocurrency exchange; Bybit, is the latest company to exit the French market due to rising regulatory pressures.

This new change highlights the increasing regulatory pressure being faced by Bybit and other cryptocurrency exchanges in the market. This decision came after sharp monitoring from AMF, alternatively known as Commission des opérations de bourse, one of the French financial market regulatory bodies.

• Background and Regulatory Issues

Still, one of the largest and well-known cryptocurrency trading platforms Bybit has been on the AMF’s list of non-recommended brokers since May of 2022. The regulator pointed to Bybit for unlawful provision of services without being registered as a Digital Asset Service Provider (DASP) and failing to meet the French laws on finance. The AMF has stated that any digital asset service provider that is active in France must abide by strict regulatory requirements, including and especially the need to register in order to counter money laundering and terrorist financing.

• Bybit’s Response and Market Exits

To the issues of regulations, Bybit actively decided to shut down its operations in France to avoid additional legal issues. The AMF had urged the investors to be very vigilant and ready for any eventuality and possible interruptions in services and access to the Bybit website as it enjoyed the legal mandate to do so within France. This is similar to Bybit’s earlier withdrawal from the UK and Canadian market due to similar regulatory concerns.

Regulatory issues that Bybit has faced are not limited to France, however, the circumstances that Bybit has encountered are indicative of the overall situation. There have been regulatory challenges in the operation of this platform in several jurisdictions, and specifically, the Securities and Futures Commission banned it in Hong Kong listing it as an unauthorized exchange platform.

• Global Operations and Future Scope

However, Bybit has not been derailed by these issues, with the company continuing to grow its operations across the world in countries that are more crypto-friendly. This exchange obtained the Minimum Viable Product (MVP) Preparatory License from the Virtual Assets Regulatory Authority in Dubai which might mean its shift to new, more permissive environments.

Specifically, Bybit’s CEO Ben Zhou stressed that the company would continue engaging in cooperation with regulators to maintain compliance and provide a safe trading platform for its users. Zhou stressed on the need for the authorities to explain and align their laws with the needs of the cryptocurrency market, which is a rapidly growing industry.

Conclusion

As said before Bybit’s withdrawal from France is one of the significant occasions under the ceaseless progression of regulatory changes in the cryptocurrency market. This is challenging due to the emerging numerous oversight measures by the authorities across the globe to the exchanges. Thus, for French investors, AMF’s warning becomes a valuable signal in understanding that regulation is in force and that they need to be careful and cautious when interacting with digital asset platforms.

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