The
cryptocurrency exchange Bybit has experienced significant growth over the past
year and, after five years of operation, has surpassed 20 million users.
However, its expansion is not as dynamic in some regions due to local
regulatory challenges.
One such
example is France, where the local financial commission, AMF, blacklisted Bybit
two years ago. Now, the national regulator issued a new warning to retail
investors about the exchange, reminding of its lack of authorization in this
part of Europe.
The exchange itself also commented on the matter, reminding that it “proactively exited the French market in October 2023.”
Under
French law, digital asset service providers (DASPs) must register with the AMF
before offering services connected to digital assets, including operating a crypto
trading platform .
This
mandatory registration helps “maintain public order though prevention of money
laundering and terrorist financing, to verify the good repute and competence of
its directors, or even to impose specific measures to protect retail investors,”
the AMF stated.
Bybit,
however, has not registered as a DASP and is therefore operating “illegally” in
France. The AMF emphasizes that unregistered platforms providing these services
violate French law.
Representatives of Bybit, on the other hand, stated that they “had been working very closely with the AMF and were in the process of seeking a license.” Wanting to ensure full compliance with local regulations, the company decided to exit the local market in 2023.
The AMF issued a similar warning against another well-performing cryptocurrency exchange, Bitget, over a month ago. The warning closely
resembles the one concerning Bybit.
AMF Considers Legal
Action, Urges Investor Caution
In addition,
the AMF “reserves the right to take legal action to block the platform’s
website” in France. The regulator is urging French retail investors who have
invested through Bybit to take necessary measures to avoid losing access to
their assets.
“All
investors must make arrangements for the eventuality that the platform suddenly
ceases to provide services to the public residing in France.”
The AMF
reminds investors to consult its whitelist of registered DASPs on its website before investing in cryptocurrencies or related assets.
Two months
ago, Bybit also came under scrutiny from another regulator, Hong Kong’s
Securities and Futures Commission (SFC). The SFC warned investors
about Bybit and several of its offerings, highlighting the cryptocurrency
exchange’s lack of licensing and cautioning about the risks of engaging with
the firm. The regulator flagged 11 of Bybit’s products as suspicious
investments, raising concerns about potential risks to investors.
Second Biggest in Crypto Spot Volumes
However, the exchange appears to be performing well in other regions and continues to
introduce new features. In May, Bybit announced the launch of Bybit P2P Shield,
a program designed to enhance user security and trust in its peer-to-peer (P2P)
trading platform.
Additionally,
Bybit has introduced a new feature to improve the user experience for
crypto purchases. By integrating Google Pay, Bybit is offering a streamlined
approach to acquiring digital assets, signaling a shift in the landscape of
cryptocurrency transactions.
It is also worth noting that, according to the Finance Magnates Intelligence benchmark, Bybit ranked second among the largest cryptocurrency platforms in terms of spot trading volumes in April.
Bybit’s volume in April 2024 reached $138 billion, a sixfold increase compared to the same month the previous year.
The
cryptocurrency exchange Bybit has experienced significant growth over the past
year and, after five years of operation, has surpassed 20 million users.
However, its expansion is not as dynamic in some regions due to local
regulatory challenges.
One such
example is France, where the local financial commission, AMF, blacklisted Bybit
two years ago. Now, the national regulator issued a new warning to retail
investors about the exchange, reminding of its lack of authorization in this
part of Europe.
The exchange itself also commented on the matter, reminding that it “proactively exited the French market in October 2023.”
Under
French law, digital asset service providers (DASPs) must register with the AMF
before offering services connected to digital assets, including operating a crypto
trading platform .
This
mandatory registration helps “maintain public order though prevention of money
laundering and terrorist financing, to verify the good repute and competence of
its directors, or even to impose specific measures to protect retail investors,”
the AMF stated.
Bybit,
however, has not registered as a DASP and is therefore operating “illegally” in
France. The AMF emphasizes that unregistered platforms providing these services
violate French law.
Representatives of Bybit, on the other hand, stated that they “had been working very closely with the AMF and were in the process of seeking a license.” Wanting to ensure full compliance with local regulations, the company decided to exit the local market in 2023.
The AMF issued a similar warning against another well-performing cryptocurrency exchange, Bitget, over a month ago. The warning closely
resembles the one concerning Bybit.
AMF Considers Legal
Action, Urges Investor Caution
In addition,
the AMF “reserves the right to take legal action to block the platform’s
website” in France. The regulator is urging French retail investors who have
invested through Bybit to take necessary measures to avoid losing access to
their assets.
“All
investors must make arrangements for the eventuality that the platform suddenly
ceases to provide services to the public residing in France.”
The AMF
reminds investors to consult its whitelist of registered DASPs on its website before investing in cryptocurrencies or related assets.
Two months
ago, Bybit also came under scrutiny from another regulator, Hong Kong’s
Securities and Futures Commission (SFC). The SFC warned investors
about Bybit and several of its offerings, highlighting the cryptocurrency
exchange’s lack of licensing and cautioning about the risks of engaging with
the firm. The regulator flagged 11 of Bybit’s products as suspicious
investments, raising concerns about potential risks to investors.
Second Biggest in Crypto Spot Volumes
However, the exchange appears to be performing well in other regions and continues to
introduce new features. In May, Bybit announced the launch of Bybit P2P Shield,
a program designed to enhance user security and trust in its peer-to-peer (P2P)
trading platform.
Additionally,
Bybit has introduced a new feature to improve the user experience for
crypto purchases. By integrating Google Pay, Bybit is offering a streamlined
approach to acquiring digital assets, signaling a shift in the landscape of
cryptocurrency transactions.
It is also worth noting that, according to the Finance Magnates Intelligence benchmark, Bybit ranked second among the largest cryptocurrency platforms in terms of spot trading volumes in April.
Bybit’s volume in April 2024 reached $138 billion, a sixfold increase compared to the same month the previous year.
Feed from Financemagnates.com