Bybit, the cryptocurrency exchange, has restated its commitment to complying with local regulations while acknowledging its previous plan to withdraw from the French market. The French government has initiated an investigation into Bybit for potential violations of regulatory requirements, despite the exchange recently reaching a global user milestone of 20 million after five years in operation.
The Autorité des Marchés Financiers (AMF), the French financial regulatory authority, has once again reminded retail investors about Bybit’s unlawful status in the country. This adds to the exchange’s ongoing struggles to comply with French regulations, which began with a blacklist action two years ago. Bybit has not yet fulfilled the legal criteria to register as a digital asset service provider (DASP) and operate within France, as emphasized in the AMF’s warning.
In response, Bybit has reiterated its commitment to complying with local regulations and mentioned its plan to exit the French market by October 2023. The exchange has also emphasized its dedication to regulatory compliance by stating that it is currently in discussions with the AMF to obtain the necessary license. However, the AMF has threatened legal action to prevent Bybit from accessing the French market due to the absence of formal registration, which renders its activities illegal under French law.
The AMF aims to protect investors and maintain public order by implementing strict restrictions. Measures such as safeguarding individual investors, assessing the abilities and integrity of corporate executives, and preventing the funding of terrorism and money laundering are all part of the AMF’s objectives.
Given the risks associated with unregistered digital asset services, the AMF advises investors who use Bybit to be prepared for unexpected service interruptions. Additionally, before investing in cryptocurrencies, the regulatory authority recommends that investors consult its official website for a list of registered DASPs.
In other crypto news today, Polygon (MATIC) has shown promising signs as Bitcoin’s surge reignites hope in the market.