TLDR
- Bybit will cease operations in France on August 13, 2024, due to regulatory challenges.
- French users must close positions and withdraw funds before the deadline.
- The exchange was previously warned by AMF for operating without proper registration.
- Bybit’s exit coincides with the implementation of EU’s MiCA regulation.
- The company remains the second-largest crypto exchange by global trading volume.
Bybit, a major player in the cryptocurrency exchange market, has announced its decision to halt operations in France. The company will cease providing services to French nationals and residents starting August 13, 2024, citing recent regulatory developments as the primary reason for this move.
In a statement released on August 2, 2024, Bybit outlined the steps for its withdrawal from the French market.
From August 2, French users’ accounts will be restricted to a “Close-Only” mode, preventing them from opening new positions or purchasing any products. The exchange strongly advises its French clientele to wind down operations, close all open positions, and begin withdrawing their assets and funds.
This decision follows a warning issued by France’s financial regulator, the Autorité des Marchés Financiers (AMF), in May. The AMF cautioned French citizens that Bybit was operating outside of country regulations and had been blacklisted in 2022 for non-compliance with French law. The regulator emphasized that cryptocurrency exchanges are required to register as digital asset service providers (DASPs) in France, a step Bybit had not taken.
Bybit’s exit from France aligns with the broader implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation. MiCA, which sets guidelines for crypto providers and stablecoin issuers, was introduced by the European Commission in September 2020. While some provisions took effect in June 2024, France and 26 other EU member states are set to implement the remaining provisions for cryptocurrencies and service providers starting December 30, 2024.
Despite facing regulatory hurdles in France, Bybit continues to be a significant player in the global cryptocurrency market. According to data from CoinGecko, Bybit ranks as the second-largest exchange by trading volume, behind only Binance. On August 2, 2024, Bybit reported over $5.5 billion in trading volume, compared to Binance’s $11.4 billion.
The company has faced similar regulatory challenges in other jurisdictions. In 2023, Bybit exited the Canadian and UK markets due to tightening cryptocurrency regulations. Currently, Bybit’s services are restricted in several countries and regions, including the United States, China, Hong Kong, Singapore, and Canada.
However, Bybit has expressed its intention to return to the French market in the future, once it secures the appropriate licenses. The company pointed to its recent successful launch in The Netherlands as evidence of its willingness to engage with European regulators.
For now, French Bybit users must act quickly. The exchange has set August 13 as the final deadline, after which it will liquidate all remaining open positions across all products. This includes derivative and spot products, trading bots, copy trading, Bybit Card, and Bybit Earn products. Bybit will continue to allow the withdrawal of assets and funds following the liquidation deadline.
