In the most recent step, Bybit has been removed from France’s Autorité des Marchés Financiers (AMF) blacklist, a business executive said. The site had been on the blacklist since May 2022 for failing to comply with local legislation.
ByBit Sight MiCA License
Bybit CEO Ben Zhou revealed on February 14 that the exchange has been working with the French regulator for over two years to fix compliance concerns and is now pursuing a Markets in Crypto-Assets Regulation (MiCA) license in the European Union. This is a significant move for Bybit since it intends to obtain the MiCA license, which would allow it to operate legally throughout the European Union.
On May 16, 2024, the AMF declared that Bybit is still an unregistered cryptocurrency platform operating unlawfully in France. The regulator emphasized that Bybit is providing digital asset services without a legal license and has the authority to restrict access to its website.
Bybit’s Regulatory Challenges
Furthermore, in December 2024, Bybit declared that it would halt withdrawal and custody services for French consumers beginning January 8, 2025, due to heightened scrutiny by French financial regulators. The exchange encouraged French consumers to withdraw their cash before the deadline to prevent delays in accessing their holdings.
The exchange continues to encounter worldwide regulatory problems. The securities authority in Malaysia ordered Bybit to cease operations, while regulatory pressure forced it to terminate its services in India.
MiCA Framework Will Shape EU Crypto Market
The MiCA framework, which will go into effect in 2024-2025, establishes a single regulatory environment for digital asset providers, with an emphasis on consumer protection, financial stability, and anti-money laundering compliance. Bybit is not alone in pursuing MiCA compliance. In November 2024, cryptocurrency exchange Gemini registered as a Digital Asset Service Provider (DASP) in France, establishing a legal foothold in the EU market.
Furthermore, popular cryptocurrency exchanges such as Bitpanda, OKX, and Crypto.com got MiCA licenses in January, allowing them to operate in the 30 nations of the European Economic Area (EEA), which comprises the 27 EU countries as well as Iceland, Liechtenstein, Norway.
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