French securities regulator, AMF, issues warning on Bybit
The AMF has blacklisted Bybit since May 2022 due to regulatory infractions.
French investors urged to prepare for potential service halt.
Besides France, Bybit faces global scrutiny and it has already pulled out of Canada and UK.
The French Securities Regulator, Autorité des Marchés Financiers (AMF), has issued a renewed cautionary notice to investors regarding the cryptocurrency exchange Bybit.
The warning stems from Bybit’s non-compliance with French regulations, specifically its failure to register as a digital asset service provider (DASP), rendering its operations illegal in France.
Possible abrupt exit of Bybit from France
Investors are urged to exercise vigilance and prepare for the potential abrupt cessation of Bybit’s services in France.
The AMF emphasizes that it retains the authority, as per the Monetary and Financial Code, to pursue legal action, including blocking Bybit’s website.
Furthermore, retail investors are advised to take preemptive measures to ensure continued access to their assets, should the platform become inaccessible.
This cautionary stance mirrors similar regulatory actions taken against Bybit globally. In March, Hong Kong’s Securities and Futures Commission (SFC) categorized Bybit as an unlicensed exchange and added it to its list of suspicious platforms. This move by the SFC reflects concerns regarding Bybit’s lack of compliance with licensing requirements.
Bybit’s regulatory woes
Although Bybit has applied for licenses in countries like Hong Kong, its history of regulatory challenges extends beyond France. Last year, the exchange withdrew from both Canada and the United Kingdom, citing regulatory pressures. These exits underscore the significant regulatory hurdles Bybit faces in various jurisdictions.
For French investors, the AMF’s warning serves as a critical reminder to prioritize regulatory compliance and due diligence when engaging with cryptocurrency exchanges.
Bybit’s illegal operation in France raises concerns about investor protection, highlighting the importance of adhering to regulatory frameworks.
In light of these developments, French investors are advised to exercise caution and consider alternative platforms that comply with local regulations.
Additionally, staying informed about regulatory updates and heeding warnings from financial authorities can help mitigate risks associated with unlicensed cryptocurrency exchanges like Bybit.
