- Bybit exits France due to new EU crypto regulations starting August 13.
- EU’s MiCA regulation enforces stricter rules for crypto providers, impacting Bybit.
- Bybit, the 2nd largest crypto exchange, faces global market exits and regulatory challenges.
Bybit, a prominent cryptocurrency exchange, announced its exit from the French market effective August 13. French users will no longer be able to conduct transactions on the platform except to withdraw their existing funds. The decision comes as the European Union’s new crypto regulations reshape the landscape for digital asset providers.
The move follows ongoing regulatory issues that Bybit has faced in France. The French financial authority, AMF, had previously warned that Bybit was operating outside French regulations.
In 2022, the AMF blacklisted Bybit for failing to comply with national laws requiring registration as a digital asset service provider (DASP). As per French law, platforms offering crypto services must be registered to operate legally.
Bybit’s withdrawal aligns with the broader regulatory changes introduced by the EU’s Markets in Crypto-Assets (MiCA) regulation. MiCA, which became effective in June 2024, establishes comprehensive rules for cryptocurrency providers and stablecoin issuers.
The legislation includes stringent requirements on capital and liquidity for stablecoins and is set to expand further to other cryptocurrencies and service providers by December 30, 2024. These provisions will introduce additional oversight on marketing practices, anti-money laundering measures, and consumer protection.
Bybit’s global operations have faced fluctuations, with exits from several markets including Canada and the UK in 2023 due to tightening regulations.
Currently, Bybit has ceased operations in multiple regions, including the U.S., the UK, China, Hong Kong, Singapore, and Canada, while maintaining a presence in countries where it has met local regulatory requirements. The exchange also lists North Korea, Cuba, Iran, Uzbekistan, and Syria among regions where it will not provide services.
Despite these challenges, Bybit remains a significant player in the cryptocurrency market. As of the latest data, it is the second-largest exchange by trading volume, trailing behind Binance.
On a recent trading day, Bybit recorded over $5.5 billion in trading volume, compared to Binance’s $11.4 billion. Bybit’s recent launch in the Netherlands highlights its ongoing efforts to align with European regulatory standards and maintain its global market presence.
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