Regulation
Bybit risks legal action in France for regulatory non-compliance
The French Autorité des Marchés Financiers (AMF) has warned French cryptocurrency investors Bybit it is not a registered platform in the country, according to a May 16 notice.
The financial regulator declared:
“The Autorité des Marchés Financiers (AMF) invites retail investors to exercise maximum vigilance regarding investment proposals presented to the public resident in France by the digital asset trading platform BYBIT. BYBIT is not authorized to provide its digital asset services in France.”
According to CoinMarketCap data, Bybit is the third largest cryptocurrency exchange by trading volume. The platform was launched in 2017 and holds over $10 billion in assets from its users.
Blacklisted from 2022
The regulator pointed out that Bybit had not complied with local regulations, which required the exchange to do so register as a digital asset service provider (DASP) pursuant to the Monetary and Financial Code.
Additionally, Bybit has been on the AMF blacklist since May 20, 2022, due to failure to meet these regulatory standards.
As a result, the AMF said it may take legal action against Bybit due to its failure to register. Such action may result in blocking of access to the exchange’s website and other measures.
In light of the regulatory crackdown, investors are advised to consider alternative measures to safeguard their assets, as the platform may face a sudden cessation of operations in France. The AMF added:
“The AMF urges French retail investors who have invested on this platform to take all necessary measures to avoid not being able to access their assets (digital assets or derivatives of digital assets). All investors must make arrangements in the event that the platform suddenly ceases to provide services to the public resident in France.”
Bybit has yet to respond to CryptoSlate’s request for comment as of this writing.
Meanwhile, this regulatory action coincides with France’s broader one efforts to establish comprehensive regulations governing cryptocurrency activities within its jurisdiction. Market watchers said these efforts reflect a commitment to protecting investors from potential risks associated with the emerging sector.