Bybit, a renowned cryptocurrency exchange, has announced that it will cease to provide services to French users on August 2. This was an unexpected action that demonstrates the increasing rigor of regulators.
France’s financial overseer, the Autorité des Marchés Financiers (AMF), has increased its pressure on the company, prompting the decision. The exchange and its French consumers will experience a significant reduction in operations during this critical period.
French consumers will be subject to numerous stringent limitations. Bybit has proclaimed all accounts to be “close-only,” which implies that users are unable to purchase items or create new positions. Bybit published a comprehensive blog post detailing the discontinuation of several services, including derivative trading, spot dealing, P2P transactions, and one-click buying. It will also be illegal to make deposits, rendering only transfers lawful.
On August 13, Bybit will automatically terminate any open accounts in spot trading, trading algorithms, or derivative commodities, further tightening the regulatory chain. Furthermore, the exchange will terminate all card services that are associated with it. If French users encounter any issues or inquiries regarding these significant modifications, they should submit assistance queries.
It is worth noting that Bybit is not the sole organization that is grappling with legal disputes. The AMF exerted pressure on the founder of Binance, Changpeng Zhao (also known as CZ), to relinquish control of Binance France in December 2023. These instances demonstrate that the French cryptocurrency market is subject to stringent regulations.
Bybit remains a significant player in the global crypto market, despite the obstacles it is encountering with authorities. Bybit is the second-ranked platform, following Binance, according to the transaction tally as of August 1.
As the EU Markets in Crypto Assets (MiCA) laws become effective, Bybit is tendering adieu. MiCA desires that all European VDA suppliers adhere to uniform standards. This approach promotes the development of novel concepts and enhances the safety and accessibility of cryptocurrency for investors. Trading platforms such as Bybit encounter challenges when complying with these regulations.
The crypto exchange has previously encountered difficulties in complying with French legislation. The exchange was unable to operate in the country due to the absence of any Digital Asset Service Provider permits, as well as a prohibition imposed by the government in 2022.
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