TLDR
- Bybit announced it will withdraw from the French market, citing “regulatory developments”
- From August 13, French users will only be able to withdraw funds, with all positions automatically liquidated if not closed by then
- The French financial regulator AMF had previously warned citizens that Bybit was operating without proper registration as a digital asset service provider
- Bybit’s exit follows the implementation of Europe’s Markets in Crypto-Assets (MiCA) regulation
- Despite restrictions in key markets, Bybit has grown to become the second-largest exchange by trading volume globally
Cryptocurrency exchange Bybit announced on August 1, 2024, that it will cease operations in France, citing “recent regulatory developments” as the primary reason for its withdrawal. This move comes in the wake of increased scrutiny from French financial regulators and the implementation of new European Union crypto legislation.
Starting August 2, French users will face restrictions on their Bybit accounts, including the inability to open new positions or purchase any products.
By August 13, all unclosed positions will be automatically liquidated, and users will only be able to withdraw their remaining funds. Bybit has stated that it looks forward to returning to the French market in the future, once it has secured the appropriate licenses under French law.
The exchange’s troubles in France are not new. In May 2024, the Autorité des Marchés Financiers (AMF), France’s financial regulator, issued a warning to French citizens that Bybit was operating without proper registration as a Digital Asset Service Provider (DASP). The AMF had previously blacklisted Bybit in 2022 for non-compliance with French regulations.
Bybit’s exit from France is part of a broader trend of cryptocurrency exchanges adapting to evolving regulatory landscapes. The move follows the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation, which sets guidelines for crypto providers and stablecoin issuers.
While some provisions of MiCA took effect in June 2024, the remaining rules for cryptocurrencies and service providers will be implemented starting December 30, 2024.
The regulatory pressure in France is not unique to Bybit. Other major exchanges, including Binance, have faced scrutiny from French authorities. In December 2023, the AMF forced Binance’s founder, Changpeng Zhao, to relinquish ownership of Binance France to comply with U.S. sanctions.
Despite these regulatory challenges, Bybit has managed to grow significantly in the global cryptocurrency market. As of August 2024, it stands as the second-largest exchange by trading volume, according to data from CoinGecko. The exchange processed more than $5.5 billion in trading volume on August 1, second only to Binance’s $11.4 billion.
However, Bybit’s growth has been accompanied by a series of market exits. In addition to France, the exchange has previously withdrawn from markets in Canada and the United Kingdom due to tightening regulations. Bybit’s website currently lists the United States, the UK, China, Hong Kong, Singapore, and Canada among the jurisdictions where it no longer operates.
For French users of Bybit, the exchange’s exit means they will need to find alternative platforms for their cryptocurrency trading activities.
