Bybit winds down services in France as regulatory pressure mounts

The Bybit crypto exchange is shutting down its services for users in France, citing regulatory developments as the reason behind the move.

Bybit, one of the world’s largest cryptocurrency exchanges by trading volume, has announced it will cease its services for users in France, citing regulatory developments as the reason behind the decision.

In an Aug. 2 press release, the crypto exchange said it will restrict accounts for French customers to a “Close-Only” mode, prohibiting them from “opening or adding of any new positions nor the purchasing of any type of products.” Until Aug. 13, 08:00 UTC, users can close their open positions across all of the exchange’s products. After the deadline, they will only be able to withdraw assets and funds from their accounts, the press release reads.

“We look forward to serving you again in the near future once the appropriate licenses allowing us to do so have been secured.”

Bybit

The exchange clarified that the restrictions apply to all its offerings, including the peer-to-peer market and its crypto debit card services.

Bybit leaves France amid AML concerns

Bybit did not explain the reason behind the move, but noted that the update comes in response to “recent regulatory developments from the French regulator.”

The move comes as the European Union’s crypto legislation called the Markets in Crypto-Assets — also known as MiCA — is set to take effect on Dec. 30, replacing individual crypto regulations within EU member states. While other crypto firms such as Coinbase, Circle, and Gemini have secured approvals from French regulators ahead of MiCA, Bybit has seemingly faced challenges due to its AML policies amid its rapid market expansion.

In mid-May, the French Financial Market Authority blocked access to Bybit, citing unauthorized operations in the country. According to the AMF, Bybit was not authorized to provide services in the region, requiring it to register before working in the country. A few weeks later, Citadel Securities-backed brokerage firm Hidden Roads stopped offering its clients access to Bybit due to a disagreement over the exchange’s AML procedures.