Bybit said Thursday it will withdraw from the French market, citing “regulatory developments” as Europe’s long-awaited crypto legislation reshapes how companies and individuals should treat the asset class.
From August 13, French users will be unable to transact on the exchange other than to withdraw any funds they already have in their account, Bybit said in a statement.
Accounts are restricted to a “close-only” mode, meaning that users will not be able to add any new positions or purchase any products.
Bybit’s status in France has long been contentious. In May, the national financial commission, AMF, warned citizens that Bybit was operating outside of country regulations and had been blacklisted in 2022 for “non-compliance with current French regulations.”
The AMF reminded people that exchanges such as Bybit are required to register as a digital asset service provider (DASP), which Bybit had not done.
“Unregistered platforms providing these services in France are illegal under French law. Bybit is not registered as a DASP,” the AMF said at the time.
Bybit told Decrypt it is “committed to providing a safe and compliant trading environment for its users worldwide” and pointed to its recent successful launch in The Netherlands as evidence of its willingness to engage with European regulators.
Bybits' withdrawal from France follows the implementation of Europe’s Markets in Crypto-Assets (MiCA) regulation, which was introduced by the European Commission on September 24, 2020, as part of a larger digital finance package.
MiCA, which sets guidelines for crypto providers and stablecoin issuers, was later ratified by the European Parliament in April 2023 before coming into force two months later. The rules for stablecoins, including stringent capital and liquidity requirements, took effect in June of this year.
France, along with 26 other member states, will implement the remaining provisions for other cryptocurrencies and service providers starting December 30, 2024. Those include oversight of marketing communications, anti-money laundering measures, and enhanced consumer protection protocols.
Bybit’s availability around the world has fluctuated alongside the difficulties it previously faced in France. The exchange exited the Canadian and U.K. markets in 2023 due to tightening rules aimed at the industry.
According to the exchange’s service restricted section of its website, Bybit currently lists the U.S., the U.K., China, Hong Kong, Singapore, and Canada as areas where it no longer has any intention of serving.
North Korea, Cuba, Iran, Uzbekistan, Russian-controlled regions of Ukraine (currently including the Crimea, Donetsk, and Luhansk regions), and Syria are also on the list.
In addition to the Netherlands launch, Bybit is available to Chinese citizens abroad in countries that the company serves. That differs from the situation in France, where citizens will be unable to access services anywhere in the world.
Despite being restricted in key markets, Bybit has grown to become the second-largest exchange by trading volume, according to CoinGecko data.
It sits behind rival Binance, with more than $5.5 billion in volume traded on Thursday compared to Binance’s $11.4 billion.
Edited by Sebastian Sinclair