ByBit, a leading cryptocurrency exchange, has announced it will halt its operations in France due to recent regulatory changes imposed by the Autorité des Marchés Financiers (AMF), France’s financial regulatory authority. This decision marks a significant shift in the company’s European strategy.
Starting August 2, French users will be restricted to closing their existing positions on ByBit. New trades or deposits will be prohibited. ByBit has set August 13 as the final deadline for users to close their positions. Positions still active after this date will be automatically liquidated. Additionally, ByBit will suspend its card services for French customers, though they will retain the ability to withdraw any remaining funds from their accounts.
This move comes after the AMF’s warning on May 16, which highlighted that ByBit has been blacklisted in France since 2022. The AMF had previously notified that ByBit had failed to register as a Digital Asset Services Provider (DASP), a requirement under French law. The regulator had also cautioned investors about the risks associated with using ByBit.
ByBit’s exit from the French market aligns with broader regulatory challenges faced by cryptocurrency exchanges globally. Despite recent expansion that saw ByBit surpass Coinbase to become the second-largest exchange by trading volume, the regulatory landscape remains turbulent. This situation contrasts with Binance, the largest crypto exchange, which has also faced significant regulatory scrutiny, including actions from the AMF.
In December 2023, during legal challenges involving Binance founder Changpeng Zhao in the United States, the AMF intervened, compelling Zhao to relinquish ownership of Binance France. Subsequently, the exchange was overseen by two Binance co-founders to ensure adherence to U.S. sanctions and French regulations.
ByBit has expressed a commitment to returning to the French market once it secures the appropriate regulatory licenses, reflecting its broader strategy to navigate international regulatory landscapes and adapt to evolving market conditions.
