Bybit Halts Services in France Amid Heightened Regulatory Scrutiny

Bybit, one of the leading cryptocurrency exchanges by trading volume, has announced its decision to discontinue services for users in France, attributing the move to regulatory developments.

In an August 2 press release, Bybit disclosed that it will transition French customer accounts to a “Close-Only” mode, preventing users from opening new positions or purchasing any products. French users have until August 13, 08:00 UTC, to close existing positions across the exchange’s offerings. Post-deadline, only asset and fund withdrawals will be permitted.

“We look forward to serving you again in the near future once the appropriate licenses allowing us to do so have been secured,” stated Bybit, clarifying that these restrictions encompass all services, including the peer-to-peer market and crypto debit card services.

Regulatory Context and Future Prospects

Bybit’s departure from the French market aligns with the impending enforcement of the European Union’s Markets in Crypto-Assets (MiCA) regulation on December 30, which aims to unify crypto regulations across EU member states. While firms like Coinbase, Circle, and Gemini have secured French regulatory approvals in anticipation of MiCA, Bybit appears to have encountered obstacles, particularly concerning its anti-money laundering (AML) policies amidst rapid expansion.

In mid-May, the French Financial Market Authority (AMF) barred Bybit from operating in France due to unauthorized activities, mandating registration for legal operation within the country. This regulatory pressure intensified when Citadel-backed brokerage firm Hidden Roads ceased offering its clients access to Bybit over disagreements related to the exchange’s AML procedures.

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