Crypto exchange ByBit has been compelled to cease operations in France due to increasing regulatory pressure from the Autorité des Marchés Financiers (AMF).
The platform announced that it will halt all new trading and deposits for French users starting August 2, 2024. Existing positions must be closed by August 13, after which they will be automatically liquidated.
The move comes after the AMF issued a stern warning in May, highlighting ByBit’s failure to register as a Digital Asset Services Provider (DASP) as required by French law. The regulator has consistently blacklisted the exchange since 2022, cautioning investors about the associated risks.
Despite the current setback, ByBit has indicated its intention to re-enter the French market once it has secured the necessary regulatory approvals.
This withdrawal marks another chapter in the ongoing global crackdown on the cryptocurrency industry. ByBit’s rapid growth, which saw it overtake Coinbase as the second-largest exchange by trading volume, has not shielded it from regulatory scrutiny.
The broader crypto landscape has been turbulent, with Binance, the industry leader, facing similar challenges, including legal action from the AMF. The regulator’s decisive action against Binance, which culminated in the forced transfer of ownership of Binance France, underscores the tough stance taken by French authorities.
ByBit’s exit from France serves as a stark reminder of the complex regulatory environment facing cryptocurrency exchanges worldwide. As regulators tighten their grip, platforms must navigate a challenging path to compliance or risk being forced out of key markets.