ByBit has announced that it is ceasing operations in France due to recent regulatory actions by French authorities.
Effective August 2, the company will restrict French users’ accounts to “close-only” mode, preventing new positions or deposits. Users in France have been instructed to close all open positions and withdraw their assets. Any remaining open positions will be liquidated automatically starting August 13.
In alignment with this decision, ByBit will suspend card services for French clients, who can still withdraw any remaining funds from their accounts. The exchange indicated it plans to re-enter the French market once it secures the necessary regulatory licences.
This move follows France’s Autorité des Marchés Financiers (AMF) warning in May, advising investors to avoid trading on ByBit due to regulatory non-compliance. The AMF blocked the platform on May 20, 2022, citing its lack of a digital asset service provider (DASP) licence in France. The regulator emphasized that unregistered platforms offering such services are illegal under French law and noted its authority to block access to non-compliant platforms.
The notice read,
“ByBit is not authorized to provide its digital asset services in France.”
AMF reiterated that Unregistered platforms providing these services in France are illegal under French law.
ByBit’s exit from France amid increasing regulatory scrutiny in the crypto space. Iowa Attorney General Brenna Bird filed an amicus brief challenging the U.S. Securities and Exchange Commission’s (SEC) authority over cryptocurrencies. Supported by attorneys general from Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma, the brief argues that the SEC’s approach stifles innovation and conflicts with state consumer protection laws. It raises constitutional concerns under the Major Questions Doctrine and federalism principles, claiming that the SEC’s regulatory actions are lacking explicit.
The filing stated,
“The SEC’s attempt to regulate cryptocurrencies without proper congressional authorization is a direct threat to state authority and consumer safety.”
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