France’s Autorité des Marchés Financiers (AMF) has issued a stern warning to French cryptocurrency investors regarding the unregistered status of the trading platform Bybit within the country. According to a notice dated May 16, the financial watchdog emphasized that Bybit is not authorized to offer its digital asset services in France.
AMF’s Warning to Investors
The AMF’s statement cautioned retail investors to exercise extreme caution when dealing with Bybit, highlighting the platform’s lack of proper authorization under French law. The notice read, “The Autorité des Marchés Financiers (AMF) is calling on retail investors to exercise the utmost vigilance with regard to investment proposals made to the public residing in France by the digital asset trading platform BYBIT. BYBIT is not authorised to provide its digital asset services in France.”
Regulatory Background and Bybit’s Blacklist Status
Despite its global presence and significant trading volume, Bybit has been blacklisted by the AMF since May 2022. The exchange, which holds over $10 billion in user assets, failed to register as a Digital Asset Service Provider (DASP) as required by the Monetary and Financial Code of France. This regulatory oversight has placed the platform at odds with French authorities, leading to potential legal repercussions.
The AMF noted that Bybit’s continued non-compliance might prompt legal actions, including measures to block access to its website for French residents. The regulator advised investors to seek alternative solutions to secure their assets, warning of the possibility that Bybit could suddenly halt its services in France. The statement further urged French retail investors to “take all necessary measures to avoid being unable to access their assets.”
Also Read: Crypto Regulation: Singapore Implements Stringent Guidelines
France’s Broader Regulatory Efforts
This development is part of France’s broader initiative to establish stringent regulations for cryptocurrency businesses operating within its borders. Market observers view these efforts as a move to enhance investor protection and mitigate risks associated with the rapidly evolving digital asset industry.
As of the time of writing, Bybit has not responded to requests for comments from CryptoSlate. The ongoing scrutiny underscores the importance of regulatory compliance for cryptocurrency platforms seeking to operate in jurisdictions with stringent financial oversight.