Bybit, a leading cryptocurrency exchange, has announced its exit from the French market due to evolving regulatory developments. This decision aligns with the recent introduction of comprehensive crypto legislation across Europe. According to a recent report, starting August 13, French users will be restricted to a “close-only” mode on Bybit. This means users can only close the position of existing funds and not open new positions or purchase products. Bybit confirmed this move in a recent statement, signaling the end of its operational activities in France.
The operating conditions have continued to worsen for Bybit due to the complex regulatory climate in France. In May, France’s financial authority, AMF, disclosed that Bybit is operating beyond its national laws, and the AMF blacklisted Bybit in 2022 for failure to register. The AMF pointed out that Bybit needs to register as a DASP, an aspect that Bybit had not complied with as a bitcoin exchange.
This development coincides with the implementation of Europe’s Markets in Crypto-Assets (MiCA) regulation, introduced by the European Commission on September 24, 2020. The European Parliament ratified MiCA in April 2023 and set comprehensive guidelines for crypto providers and stablecoin issuers. The rules for stablecoins, including stringent capital and liquidity requirements, came into force in June 2023. Broader provisions for other cryptocurrencies and service providers will be enforced from December 30, 2024.
France and other states of the EU will soon implement these regulations concerning marketing communications, AML, and further consumer protection. Such regulation changes would help shape a safer and more transparent area for digital assets in Europe. Bybit has been subjected to regulatory pressures affecting its operations worldwide, leading to notable changes. In 2023, the exchange left the Canadian and U.K. markets due to the increased regulation of cryptocurrencies. The list of restricted countries for Bybit now includes the U.S., the U.K., China, Hong Kong, Singapore, and Canada.
Bybit Surges Ahead of Coinbase, Now World’s Second-Largest Crypto Exchange: ReportDespite these challenges, Bybit has experienced substantial growth. According to CoinMarketCap data, it has become the second-largest cryptocurrency exchange by trading volume. On a recent trading day, Bybit reported over $5.41 billion in trading volume, compared to Binance’s $16.78 billion. The strategic exits from France highlight the complex and dynamic regulatory environment that cryptocurrency exchanges must navigate. As Europe tightens its regulations, exchanges like Bybit must continually adapt to maintain compliance and ensure operational sustainability in various global markets.
