Bybit’s departure from France comes after pressure from the country’s financial watchdog, AMF, which flagged the platform for operating without proper registration.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
Prominent cryptocurrency exchange Bybit announced today that it will cease providing withdrawals and custody services for French users starting next year. The company has requested users remove their funds from the platform before January 8, 2025, as it plans to ramp up its services in the region. Bybit blamed the stringent regulatory environment in France for its decision to discontinue servicing French residents and citizens. The company had earlier implemented a restriction on its platform after it was called out by the country’s Autorité des Marchés Financiers (AMF) in May 2024.
At that time, the French financial authorities warned users that “BYBIT is not authorized to provide its digital asset services in France” and added that the company had been operating without the appropriate authorization from the market watchdog.
The authorities revealed that Bybit had been blacklisted since 2022 due to its inability to adhere to the current French regulations. Under the new law, crypto exchanges must register as digital asset service providers (DASP) in France to freely provide custody and trading services in the region.
“Unregistered platforms providing these services in France are illegal under French law. BYBIT is not registered as a DASP. The AMF reserves the right, under the terms of the Monetary and Financial Code, to take legal action to block the website of this platform, which is providing its services illegally in France,” reads the announcement.
In light of these developments, Bybit is winding down its operations in the country. The company has given users until January 8, 2025, to close their accounts. After the deadline, Bybit will liquidate all users’ assets valued at around 10 USDC. The funds will be accounted for as transaction fees by the company.
However, for those with assets above 10 USDC, the exchange has partnered with Coinhouse, a regulated crypto trading platform in France, to ensure the safe return of the funds. This group of users will be able to withdraw their cryptocurrencies from the platform directly instead of Bybit.
Despite the planned departure from the French market, Bybit is still operational in other jurisdictions within Europe. Earlier this year, Bybit announced that it had opened a regional platform in the Netherlands in March. Through this platform, users can buy and sell cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) in compliance with local regulations.
In October, the exchange also announced that it is pursuing an operational license in Austria to explore the country’s crypto market. If approved, Bybit will be able to legally offer its services to users in the region.
Beyond the European market, the firm is licensed in Cyprus, Georgia, and even the United Arab Emirates (UAE), particularly Dubai. Last year, the company announced that it had earned a full regulatory license from the financial watchdog in Cyprus to provide a series of services, including trading and custody services in the market.
In Georgia, the company received a regulatory nod from the country’s central bank to legally offer its products and services to regional customers.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
