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France’s Financial Regulator Warns Against Bybit
The Autorité des Marchés Financiers (AMF) in France issued a warning to French cryptocurrency investors regarding the use of Bybit, a digital asset trading platform that is not registered in the country. This cautionary stance was communicated through a notice released on May 16.
A Regulatory Advisory
The AMF emphasized the need for retail investors to exercise extreme caution when considering investment opportunities presented by Bybit, emphasizing that the platform is not authorized to offer its services in France.
Bybit, according to data from CoinMarketCap, holds the position of the third-largest cryptocurrency exchange based on trading volume. Launched back in 2017, the platform securely manages over $10 billion worth of its users’ assets, making it a significant player in the crypto market.
Blacklisted Status Since 2022
One key reason for the AMF’s warning against Bybit is the platform’s non-compliance with local regulations mandating registration as a digital asset service provider under the Monetary and Financial Code. This failure to adhere to regulatory standards led to Bybit being blacklisted by the AMF in May 2022.
Consequently, the financial regulator has raised the possibility of taking legal action against Bybit for its lack of registration. Potential measures could involve restricting access to the platform’s website and implementing other regulatory steps to enforce compliance.
Given the prevailing regulatory environment, investors are strongly advised to adopt precautionary measures to protect their investments, given the potential for Bybit to abruptly halt operations in France. The AMF underlined the importance of investors making provisions to access their assets in case the platform ceases to serve the French public.
“The AMF is urging French retail investors who have invested on this platform to take all necessary measures to avoid being unable to access their assets (digital assets or digital asset derivatives). All investors must make arrangements for the eventuality that the platform suddenly cease to provide services to the public residing in France.”
As of the time of writing, Bybit has yet to respond to requests for comment from CryptoSlate regarding the situation.
This regulatory action aligns with France’s broader initiatives to establish a comprehensive regulatory framework governing cryptocurrency operations within its jurisdiction. Such efforts underscore the country’s commitment to safeguarding investors from potential risks associated with the dynamic cryptocurrency industry.
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