Bybit winds down services in France as regulatory pressure mounts

Cryptocurrency exchange Bybit is ending its services for users in France, citing regulatory developments as the reason for the decision.

Bybit, one of the world’s largest cryptocurrency exchanges in terms of trading volume, announced that it will terminate its services to its users in France due to regulatory developments.

The crypto exchange said in a press release on August 2 that it would restrict French clients’ accounts to “Close Only” mode, prohibiting them from “opening or adding new positions or purchasing any products.” Until August 13 at 08:00 UTC, users can close 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 said.

“We look forward to serving you again in the near future, once the appropriate licenses that allow us to provide our services are obtained.”

Bybit

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

Bybit leaves France over AML concerns

Bybit did not explain the reason behind this move but stated 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 Markets in Crypto Assets — also known as MiCA — comes into force on Dec. 30, replacing individual crypto regulations in EU member states. While other crypto companies like Coinbase, Circle, and Gemini have received approval from French regulators ahead of MiCA, Bybit appears to have faced challenges due to its AML policies amid rapid market expansion.

In mid-May, the French Financial Markets Authority blocked access to Bybit, citing unauthorized transactions in the country. According to the AMF, Bybit was not authorized to operate in the region and was required to register before operating in the country. A few weeks later, Citadel-backed brokerage Hidden Roads stopped providing its clients with access to Bybit due to a disagreement over the exchange’s AML procedures.