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AMF warns French investors against Bybit Crypto Exchange
Cryptocurrency exchange Bybit has seen significant growth over the past year, and after five years of operation, has exceeded 20 million users. However, its expansion is not as dynamic in some regions due to local regulatory challenges.
One such example is France, where the local financial commission, AMF, blacklisted Bybit two years ago. Now, the national regulator has issued a new warning to retail investors about the exchange, recalling its lack of authorization in this part of Europe.
The exchange itself also spoke out on the issue, recalling that it “proactively exited the French market in October 2023”.
Under French law, digital asset service providers (DASPs) must register with the AMF before offering services related to digital assets, including the management of a cryptocurrency.
exchange platform .
This mandatory registration helps to “maintain public order through the prevention of money laundering and terrorist financing, to verify the integrity and competence of its directors, or even to impose specific measures to protect retail investors”, the AMF said.
Bybit, however, is not registered as a DASP and therefore operates “illegally” in France. The AMF points out that unregistered platforms providing these services violate French law.
Bybit representatives, on the other hand, said they “have been working closely with the AMF and are in the process of obtaining a license.” Wanting to ensure full compliance with local regulations, the company has decided to exit the local market in 2023.
The AMF issued a similar warning against another well-performing cryptocurrency exchange, Bitget, more than a month ago. The notice closely resembles the one regarding Bybit.
The AMF considers legal action and urges investor caution
Furthermore, the AMF “reserves the right to take legal action to block the platform’s website” in France. The regulator urges French retail investors who have invested via Bybit to take the necessary measures to avoid losing access to their assets.
“All investors must make arrangements for the eventuality that the platform suddenly ceases to provide services to the public resident in France.”
The AMF reminds investors to consult the white list of registered DASPs on its website before investing cryptocurrencies or related goods.
Two months ago Bybit also came under scrutiny from another regulator, the Securities and Futures Commission (SFC) of Hong Kong. The SFC has warned investors about Bybit and many of its offerings, highlighting the cryptocurrency exchange’s lack of licensing and warning about the risks of engaging with the company. The regulator has flagged 11 Bybit products as suspicious investments, raising concerns about potential risks for investors.
The second largest in terms of cryptocurrency volumes
However, the exchange seems to be working well in other regions and continues to introduce new features. In May, Bybit announced the launch of Bybit P2P Shielda program designed to improve user security and trust in its peer-to-peer (P2P) trading platform.
Additionally, Bybit has introduced a new feature to improve user experience for cryptocurrency purchases. By integrating Google PayBybit offers a streamlined approach to acquiring digital assets, signaling a shift in the cryptocurrency transaction landscape.
It is also worth noting that, according to the Finance Magnates Intelligence benchmarkBybit ranked second among the largest cryptocurrency platforms in terms of spot trading volumes in April.
Bybit’s volume in April 2024 reached $138 billion, a six-fold increase compared to the same month last year.
Cryptocurrency exchange Bybit has seen significant growth over the past year, and after five years of operation, has exceeded 20 million users. However, its expansion is not as dynamic in some regions due to local regulatory challenges.
One such example is France, where the local financial commission, AMF, blacklisted Bybit two years ago. Now, the national regulator has issued a new warning to retail investors about the exchange, recalling its lack of authorization in this part of Europe.
The exchange itself also spoke out on the issue, recalling that it “proactively exited the French market in October 2023”.
Under French law, digital asset service providers (DASPs) must register with the AMF before offering services related to digital assets, including the management of a cryptocurrency.
exchange platform .
This mandatory registration helps to “maintain public order through the prevention of money laundering and terrorist financing, to verify the integrity and competence of its directors, or even to impose specific measures to protect retail investors”, the AMF said.
Bybit, however, is not registered as a DASP and therefore operates “illegally” in France. The AMF points out that unregistered platforms providing these services violate French law.
Bybit representatives, on the other hand, said they “have been working closely with the AMF and are in the process of obtaining a license.” Wanting to ensure full compliance with local regulations, the company has decided to exit the local market in 2023.
The AMF issued a similar warning against another well-performing cryptocurrency exchange, Bitget, more than a month ago. The notice closely resembles the one regarding Bybit.
The AMF considers legal action and urges investor caution
Furthermore, the AMF “reserves the right to take legal action to block the platform’s website” in France. The regulator urges French retail investors who have invested via Bybit to take the necessary measures to avoid losing access to their assets.
“All investors must make arrangements for the eventuality that the platform suddenly ceases to provide services to the public resident in France.”
The AMF reminds investors to consult the white list of registered DASPs on its website before investing cryptocurrencies or related goods.
Two months ago Bybit also came under scrutiny from another regulator, the Securities and Futures Commission (SFC) of Hong Kong. The SFC has warned investors about Bybit and many of its offerings, highlighting the cryptocurrency exchange’s lack of licensing and warning about the risks of engaging with the company. The regulator has flagged 11 Bybit products as suspicious investments, raising concerns about potential risks for investors.
The second largest in terms of cryptocurrency volumes
However, the exchange seems to be working well in other regions and continues to introduce new features. In May, Bybit announced the launch of Bybit P2P Shielda program designed to improve user security and trust in its peer-to-peer (P2P) trading platform.
Additionally, Bybit has introduced a new feature to improve user experience for cryptocurrency purchases. By integrating Google PayBybit offers a streamlined approach to acquiring digital assets, signaling a shift in the cryptocurrency transaction landscape.
It is also worth noting that, according to the Finance Magnates Intelligence benchmarkBybit ranked second among the largest cryptocurrency platforms in terms of spot trading volumes in April.
Bybit’s volume in April 2024 reached $138 billion, a six-fold increase compared to the same month last year.