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Bybit, a leading cryptocurrency exchange, announced it will stop its services for French users, citing recent regulatory developments. The decision impacts all Bybit accounts in France, transitioning them to a “Close-Only” mode, which prevents users from opening new positions or purchasing products.
Starting August 2, Bybit will implement restrictions, allowing French users only to close their existing positions. By August 13, 08:00 UTC, users must close all open positions. Post-deadline, they can only withdraw assets and funds from their accounts. The exchange stated, “We look forward to serving you again in the near future once the appropriate licenses allowing us to do so have been secured.”
These restrictions encompass all Bybit services, including the peer-to-peer market and crypto debit card offerings.
While Bybit didn’t specify detailed reasons for the move, it acknowledged that the update responds to “recent regulatory developments from the French regulator.” This decision comes as the European Union’s Markets in Crypto-Assets (MiCA) legislation is set to take effect on December 30. MiCA aims to standardize crypto regulations across EU member states.
Other cryptocurrency firms like Coinbase, Circle, and Gemini have already secured regulatory approvals in France in anticipation of MiCA. However, Bybit has faced hurdles, particularly regarding its anti-money laundering (AML) policies amid rapid market expansion.
In mid-May, the French Financial Market Authority (AMF) blocked Bybit’s access, citing unauthorized operations. The AMF stated that Bybit needed proper registration to offer services in France. Shortly after, Citadel-backed brokerage Hidden Roads ceased providing clients access to Bybit over disagreements concerning the exchange’s AML procedures.
Bybit’s regulatory challenges in France reflect broader compliance issues within the rapidly evolving crypto market. As the industry anticipates MiCA’s implementation, exchanges like Bybit must navigate complex regulatory landscapes to maintain their market presence.