Regulation
Bybit does not comply with the country’s crypto regulations
Bybit, a well-known crypto exchange backed by the BitDAO ecosystem, was flagged yesterday by the French financial regulator for failing to comply with registration requirements in the country.
The Financial Markets Authority (AMF) had already included the stock exchange on its blacklist, but it can now request the blocking of the platform in France before a judge.
Let’s see everything in detail below.
Crypto and regulation in France: the AMF warns investors about the illegal activities of Bybit
Tensions continue in Europe between the crypto world and various local regulations: Yesterday, the Autorité des Marchés Financiers (AMF), France’s financial regulator, warned investors against the illegal presence of the Bybit exchange in the country.
The cryptocurrency exchange platform, although it has its operational headquarters in Dubaioffers its services to French users even if it is not registered as a digital asset service provider (PSAN).
The AMF had already included Bybit in the blacklist of unauthorized financial operators in May 2022, but now reports that the site may be closed upon formal request to a judge.
Here are the words of the French regulator in a press release:
“Unregistered platforms that provide these services in France are illegal under French law. Bybit is not registered as a digital asset service provider.
We are not talking about testimonials related to possible payment defaults by the company or fraudulent activities, such as those carried out by FTX until its fateful collapse in November 2022, but simply omission of certain registration obligations.
France does not effectively prohibit the implementation of services linked to the provision of digital asset custody services on behalf of third parties, nor to the purchase, sale and exchange of cryptocurrencies, but requires the prior agreement of PSAN.
According to the regulatory body, this type of recording makes it possible to preserve public order through the fight against money laundering and the financing of terrorism, to verify the integrity and competence of managers and to impose specific measures to protect savers.
Recently, the AMF added other crypto platforms to its blacklist, such as 24cryptoforestrading.net and cryptoneyx.io.but at the same time approved the registration for GeminiCoinbase and Circle.
We remind you that Bybit, unlike other crypto exchanges such as Binace, Coinbase, Gemini Gate, BitPanda and Youth Platformis not even registered in the register of virtual operators OAMand would therefore operate without authorization even on Italian territory.
Same situation for Bybit in Hong Kongwhere the special administrative region issued a notice similar to that published by the French Financial Regulatory Authority.
In 2023, the exchange founded by investor Ben Zhou was forced to exit the Canadian and United Kingdom markets due to financial obligations and lack of regulatory oversight.
It should be noted, however, that Bybit is trying to expand its presence around the world, where regulations seem less restrictive: it recently launched a trading service in the Netherlands and Kazakhstan.
Bybit’s reputation in the cryptocurrency exchange sector
Although it is not registered with regulatory bodies in several countries around the world, Bybit remains a mainstay of the cryptocurrency exchange industry.
Currently, according to data from Coinmarketcap, the platform recorded in the last 24 hours a spot trading volume of 3.7 billion and a derivatives volume of $16.9 billion. On February 24, 2024, it set its trading volume record, processing orders for more than $71 billion.
With these figures, Bybit undoubtedly ranks in the TOP 5 of the best cryptocurrency exchanges in the world.which can also rely on a solid and efficient infrastructure, supported by none other than the multi-billion dollar autonomous organization BitDAO.
The CoinGlass analysis service ranks Bybit 3rd in the ranking of brokers with the most open interest on BTC and 2nd for open interest on ETH.
In total, it has around 12 billion open positions on derivatives markets.
The user interface is simple and intuitive, and the platform offers very interesting advanced features such as launchpad, OTC trading, copy trading, debit card, etc.
Bybit is present in 160 different countries and has nearly 30 million users with 1,219 cryptocurrencies listed on its platform.
According to Dune Analytics, as of April 2023, Bybit’s total reserves were around $1.6 billion, including $950 million in stablecoins, $350 million in ETH, and around $300 million in BIT and other tokens. In October 2021, this data reached an all-time high at $2.2 billion.
