French Regulator Issues Warning About Bybit Crypto Exchange

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On May 16, the French financial regulator, the Autorité des Marchés Financiers (AMF), reiterated its position that Bybit is blacklisted in France. It warned that the exchange is operating illegally in the country and has the authority to block its website.

French Regulator Asserts Bybit is an Unregistered Platform

According to the warning notice, the AMF stated that Bybit Exchange is not registered as a Digital Asset Service Provider (DASP) in France, making its operation illegal.

The French regulator reminded the public that the crypto platform was blacklisted on May 20, 2002, for offering unregistered services and non-compliance with current French regulations.

The AMF emphasized that registering DASPs is important for maintaining public order, especially in preventing money laundering and terrorist financing. It also ensures that the directors of these platforms have a good reputation and are competent.

The regulator’s notice has therefore urged retail investors to take precautionary measures to safeguard their assets in case Bybit exchange ceases its operation and suggested a long list of allowed and registered crypto platforms, including Coinhouse, Voyager Europe, and Bitstamp Europe, which French residents can use for their crypto trading needs.

The AMF is not the first regulatory body to issue a warning notice to crypto users concerning Bybit’s operation.

It could be recalled that ​​the Securities and Futures Commission (SFC) of Hong Kong issued a cautionary statement about Bybit on March 14, highlighting its status as an unregistered crypto trading platform despite the country being notable for the approval of spot Bitcoin and Ethereum ETFs that might create opportunities for investors.

The regulator pointed out that Bybit offered trading services for crypto-related products in multiple jurisdictions. These products included Bybit Futures, Bybit Options, Bybit Leveraged Tokens, Dual Assets, Bybit Lending, Bybit Wealth Management, and others.

Despite this warning, Bybit has persisted in expanding its services on a global scale. Recently, it launched a regulated crypto trading platform in the Netherlands and Kazakhstan.

France Regulator Intensifies Effort to Clamp Down Illegal Exchanges

The French regulator issued a circular regarding the supervision and issuance of virtual assets in France on April 3, highlighting BITGET as one of the platforms offering crypto investments through unauthorized entities.

According to the regulator, BITGET has been providing investment products without the required authorization. To protect investors from potential fraud, the AMF, in collaboration with the French Prudential Supervision and Resolution Authority (ACPR), added BITGET to the updated list of unauthorized investment providers to be blacklisted.

The French monetary and financial code mandates registration as a Digital Asset Service Provider (PSAN) for certain activities related to digital assets, such as custody services, buying or selling digital assets, and operating digital asset trading platforms.

This registration ensures compliance with regulations aimed at preventing money laundering and terrorism financing and ensuring the integrity and competency of management and shareholders, thereby safeguarding investor interests.

BITGET has operated in France without obtaining the necessary PSAN registration. Consequently, the platform has been added to the AMF blacklist since November 7, 2023, due to its failure to comply with French regulations.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.