In a startling move, popular cryptocurrency exchange ByBit has announced it is ceasing operations in France due to recent regulatory pressures from the Autorité des Marchés Financiers (AMF). The announcement, made on August 1, warns French users of significant account restrictions starting August 2.
ByBit attributed the halt to regulatory developments mandated by France’s financial watchdog, the AMF. Consequently, French accounts will be restricted to a “close-only” status, barring users from opening new positions or depositing funds.
Effective August 13, any open positions will be automatically liquidated, and card services for French clients will be suspended. Users will, however, retain the ability to withdraw remaining funds from their accounts.
ByBit expressed hope to re-enter the French market once it obtains the necessary regulatory licenses, signaling its intent to comply with French law in the future.
The AMF had previously blacklisted ByBit in May 2022 for failing to register as a Digital Asset Services Provider (DASP). In a May 16 warning, the AMF reminded French residents of ByBit’s blacklisted status and cautioned that the exchange could be shut down at any moment.
Despite regulatory hurdles, ByBit recently surpassed Coinbase in June to become the world’s second-largest cryptocurrency exchange by trading volume, even encroaching on Binance’s market share. Binance itself has faced intense scrutiny from the AMF, which targeted the exchange’s French operations in December 2023. This regulatory pressure forced Binance founder Changpeng Zhao to cede control of Binance France to equal-stake shareholders, who were also founding members of the exchange.
ByBit’s decision underscores the growing regulatory challenges cryptocurrency exchanges face in Europe and globally, highlighting the increasing scrutiny from financial authorities.
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