Bybit, a leading cryptocurrency exchange, announced its withdrawal from the French market due to "regulatory developments." Starting August 13, French users will only be able to withdraw existing funds, as all accounts will be restricted to a "close-only" mode, prohibiting new positions or product purchases.
The French market has been a contentious area for Bybit. In May, the Autorité des Marchés Financiers (AMF), France's financial regulatory authority, flagged Bybit for operating without proper registration. The exchange was blacklisted in 2022 for "non-compliance with current French regulations," and the AMF reiterated that Bybit had not registered as a Digital Asset Service Provider (DASP), making its operations in France illegal.
Bybit's exit from France coincides with the broader implementation of the Markets in Crypto-Assets (MiCA) regulation across Europe. Introduced on September 24, 2020, and ratified by the European Parliament in April 2023, MiCA establishes comprehensive guidelines for crypto providers and stablecoin issuers. The regulation, which includes strict capital and liquidity requirements for stablecoins, began taking effect in June 2023, with additional provisions set to be enforced from December 30, 2024. These will cover marketing communications, anti-money laundering measures, and enhanced consumer protection protocols.
Bybit has faced regulatory challenges in other regions as well. The exchange exited the Canadian and UK markets in 2023 and currently does not serve users in the US, China, Hong Kong, Singapore, and Canada. It also restricts access in countries like North Korea, Cuba, Iran, Uzbekistan, Russian-controlled regions of Ukraine, and Syria. Despite these restrictions, Bybit has maintained significant trading volume, becoming the second-largest exchange by trading volume behind Binance, with $5.5 billion traded on a recent Thursday compared to Binance's $11.4 billion.
Bybit's decision to withdraw from the French market and its efforts to comply with evolving regulatory landscapes underscore the challenges and complexities facing cryptocurrency exchanges globally. The exchange's commitment to providing a compliant trading environment, as evidenced by its recent launch in the Netherlands, indicates its ongoing efforts to adapt and grow within the rapidly changing regulatory framework.
The European Union (EU) is currently working on a new set of regulations, stating that it would create a more transparent and secure environment for investors. The arrival of MiCA would inevitably anger many investors, who believe that the regulation is the violation of the DeFi nature of crypto. But there are also others like Binance CEO Changpeng welcoming the change. So what is all this buzz about?
XingChiStablecoin, MiCA, Europe's MiCA is finally here. How will the United States respond? Golden Finance, Under the new EU rules, stablecoins will be classified as electronic currency tokens.
JinseFinanceThe move mirrors that of Binance, the world's largest crypto exchange, in terms of leaving Canada.
OthersThis latest approval highlights Bybit's continued commitment to expanding its presence in emerging and dynamic markets.
OthersBybit and Swyftx are the latest victims of the spreading crypto contagion, with both firms announcing job cuts in the wake of FTX collapse.“
decryptBybit is the latest crypto exchange to slash a sizeable portion of its workforce.
OthersHuobi and Bybit have publicly provided their proof of reserves to assure investors.
BeincryptoThe Markets in Crypto-Assets framework stands to get in the way of Circle's Euro Coin and other digital assets. Policymakers should revise the proposal.
Others"Bybit responded to the OSC’s enforcement action, maintained an open dialogue, provided requested information, and committed to engaging in registration discussions," said the OSC.
CointelegraphThe function enables users to speculate on future prices of cryptos and settle their trades using USDC.
Cointelegraph
