Bybit, a prominent cryptocurrency exchange, has recently faced regulatory scrutiny in France. Despite the cryptocurrency exchange, it has been in the market for five years. The exchange is estimated to have a user base of 20 million around the world. The fact that the exchange is not authorized to operate in France has kept it from dealing with local traders. This is not the first time AMF has banned Bybit, as it blocked the platform two years ago due to Bybit not being compliant with French regulations. The authorities’ recent focus on Bybit demonstrates that this cryptocurrency exchange continues to face severe regulatory problems in France.
The AMF has reiterated the importance of all digital asset service providers (DASPs) being officially registered before they start working in France. Bybit, although it recognizes the need to be registered, still needs to finish this process, which has caused its status as an illegal operator under French law. Following this, the company had already declared its decision to leave the French market by October 2023, according to local regulations. Besides, Bybit has already stated that they are negotiating with the AMF to get a license and start working legally in France.
Even though the AMF admits Bybit’s exit from the French market, it reminds us that this situation may lead to legal actions to cease the exchange from its operation. The regulatory authority of France must maintain stability and investor confidence by implementing strict regulations against fraudulent activities like money laundering and the financing of terrorism to ensure the integrity and honesty of the company heads and help the retail investors.
The AMF has previously advised investors to anticipate service disruptions by Bybit, owing to the risk of unregistered digital asset services in the country and the unclear legality needing to be clarified the service. The website has made this so clear that it advises investors to check the allowlist of registered DASPs by referring to its official website before making cryptocurrency transactions. It shows the dedication of the website to its investors’ protection in the volatile cryptocurrency market.
In the face of the problems in France, the SFC caution statements, and Bitby’s continued growth, the leadership never dulled its drive to move forward. The partner recently introduced a new security feature to the market, Bybit P2P Shield, to protect traders in their peer-to-peer system and establish mutual trust. This move makes the transaction system safer in an exchange.
In addition, Bybit exchange has implemented new approaches to improve its platform’s usability and security. This is highlighted by the adoption of Google Pay, which makes it easy for users to access cryptocurrencies. This decision by Bybit underlines its commitment to constantly improving customer service and secure online transactions despite the complexity of legal systems in different countries. These developments demonstrate Bybit’s active interest in the evolving customer requirements and regulatory needs as it aims to grow its global footprint.
Source: https://www.cryptonewsz.com/amf-warns-bybit-operates-without-approval-in-france/