Bybit Exits French Market As EU Continues To Enforce Strict Regulations

On Thursday, Bybit announced it will be exiting the French market due to regulatory developments as various new cryptocurrency legislation changes in Europe continue to impact the landscape for digital assets.

MiCA In Full Effect

Starting August 13th, French users can only withdraw existing funds, with the platform switching to a close-only mode, restricting new positions or purchases. Bybit has faced plenty of controversy in France, with the AMF previously warning that it was operating outside national regulations and had been blacklisted for non-compliance. The AMF emphasized that exchanges must register as digital asset service providers (DASP), which Bybit had not done.

The exit aligns with the Markets in Crypto-Assets (MiCA) regulation, introduced by the European Commission in September 2020 and ratified in April 2023. MiCA, which enforces rules for crypto providers and stablecoin issuers, began affecting stablecoins in June and will extend to other cryptocurrencies and services starting December 30, 2024.

The Controversy Continues

Bybit has faced challenges globally, exiting Canadian and U.K. markets in 2023 due to stricter regulations. The exchange no longer serves the U.S., the U.K., China, Hong Kong, Singapore, Canada, and other restricted regions. Despite these restrictions, Bybit remains the second-largest exchange by trading volume, with $5.5 billion traded on Thursday, behind Binance which has $11.4 billion.

Also in France, the controversy surrounding the Paris 2024 Olympics centers on issues such as the high costs, potential environmental impact, and concerns over security and the displacement of local communities. Critics argue that the event could exacerbate social inequalities and cause significant disruptions, and that the focus should be on solving these issues rather than alienating international companies like ByBit.