Regulation
Bybit faces possible legal action in France over regulatory non-compliance
The French Financial Markets Authority (AMF) has warned French crypto investors that Bybit is not a registered platform in the country, according to a May 16 notice.
The financial regulator declared:
“The Financial Markets Authority (AMF) calls on individual investors to exercise the greatest vigilance with regard to investment proposals made to the public residing in France by the digital asset exchange 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 user assets.
Blacklisted since 2022
The regulator pointed out that Bybit failed to comply with local regulations, which required the exchange register as a digital asset service provider (DASP) under the Monetary and Financial Code.
Furthermore, Bybit has been included on the AMF blacklist since May 20, 2022, due to its non-compliance with these regulatory standards.
As a result, the AMF indicated that it may take legal action against Bybit due to its failure to register. Such action could involve blocking access to the exchange’s website and other measures.
In light of the regulatory crackdown, investors are advised to consider alternative measures to protect their assets, as the platform could face a sudden cessation of its operations in France. The AMF adds:
“The AMF invites French individual investors who have invested on this platform to take all necessary measures to avoid no longer being able to access their assets (digital assets or derivatives of digital assets). Any investor must prepare in the event that the platform suddenly stops providing services to the public residing in France.
Bybit has not yet responded to CryptoSlate’s request for comment at the time of publication.
At the same time, this regulatory measure coincides with France’s broader policy. efforts establish comprehensive regulations governing crypto businesses in its jurisdiction. Market watchers said the efforts reflect a commitment to protecting investors from potential risks associated with the emerging industry.