Bybit faces potential legal action in France for regulatory non-compliance Bybit faces potential legal action in France for regulatory non-compliance
AMF warned that Bybit might "suddenly cease to provide services to the public residing in France."
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Updated: May. 16, 2024 at 8:21 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
France’s Autorité des Marchés Financiers (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 stated:
“The Autorité des Marchés Financiers (AMF) is calling on retail investors to exercise the utmost vigilance with regard proposal investments made to the public residing in France by the digital asset trading platform BYBIT. BYBIT is not authorised to provide its digital asset services in France.”
According to CoinMarketCap data, Bybit is the third-largest crypto exchange by trading volume. The platform was launched in 2017 and holds over $10 billion worth of its users’ assets.
Blacklisted since 2022
The regulator pointed out that Bybit had failed to comply with local regulations, which required the exchange to register as a digital asset service provider (DASP) under the Monetary and Financial Code.
Moreover, Bybit has been on the AMF’s blacklist since May 20, 2022, due to its failure to comply with these regulatory standards.
Consequently, the AMF said it might pursue legal action against Bybit due to its lack of registration. Such action could entail blocking access to the exchange’s website and other measures.
In light of the regulatory crackdown, investors are urged to consider alternative measures to safeguard their assets, as the platform may face sudden cessation of operations in France. AMF added:
“The AMF is urging French retail investors who have invested on this platform to take all necessary measures to avoid being unable to access their assets (digital assets or digital asset derivatives). All investors must make arrangements for the eventuality that the platform suddenly cease to provide services to the public residing in France.”
Bybit has yet to respond to CryptoSlate’s request for comment as of press time.
Meanwhile, this regulatory action coincides with France’s broader efforts to establish comprehensive regulations governing crypto businesses within its jurisdiction. Market observers said these efforts reflect a commitment to protecting investors from potential risks associated with the emerging industry.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bybit
Bybit is a cryptocurrency derivative trading platform established in March 2018 and registered in the BVI.