AMF Blocks Access to Bybit Website
The French Financial Market Authority (AMF) has taken decisive action against the Bybit cryptocurrency exchange, blocking access to its website for users in France. This move comes as part of the AMF’s effort to crack down on unauthorized operations in the digital asset space.
Unauthorized Operations in France
According to the latest statement from the AMF, Bybit is not authorized to provide digital asset services within the country. The regulatory body requires all digital asset service providers (DASPs) to register with the AMF before offering their services to the public. This includes operating a cryptocurrency trading platform.
Importance of Registration
The AMF emphasized that compulsory registration is crucial for maintaining public order. It helps prevent money laundering and terrorist financing, ensures the good reputation and competence of directors, and implements specific measures to protect retail investors. Bybit’s failure to register means it operates illegally in France.
Bitget Also Receives AMF Warning
Bybit is not the only cryptocurrency exchange facing scrutiny from the AMF. Over a month ago, the AMF issued a similar warning against Bitget, another crypto exchange. Like Bybit, Bitget is not registered as a DASP and is subject to mandatory registration requirements in France. As of November 7, 2023, Bitget has been blacklisted by the AMF for non-compliance with French regulations.
Previous Actions Against Binance
Last year, reports emerged that Binance’s French subsidiary was under preliminary investigation since February 2022. The investigation focused on allegations of providing cryptocurrency services illegally and failing to comply with anti-money laundering obligations. However, in May 2023, Binance successfully obtained a license as a crypto service provider from the French Financial Market Supervisory Commission, marking a significant step in its compliance efforts.
Implications for the Crypto Market
The actions taken by the AMF against Bybit and Bitget are indicative of the regulatory landscape in France, which is becoming increasingly stringent regarding digital asset services. The French Financial Market Authority’s rigorous enforcement highlights the importance of adhering to local regulations to operate legally within the country.
Future Compliance Measures
Cryptocurrency exchanges aiming to operate in France must prioritize compliance with the AMF’s regulations. This includes undergoing the necessary registration processes and implementing robust measures to prevent illicit activities such as money laundering and terrorist financing. Exchanges must also ensure that their directors have a good reputation and the competence required to manage digital asset services effectively.
Protecting Retail Investors
One of the key motivations behind the AMF’s stringent regulatory measures is the protection of retail investors. By ensuring that digital asset service providers adhere to high standards of operation, the AMF aims to create a safer investment environment. This includes implementing specific measures to safeguard investors’ interests and reduce the risk of financial fraud.
Global Regulatory Trends
The actions of the AMF are part of a broader global trend where regulatory bodies are tightening controls over the cryptocurrency industry. Countries worldwide are introducing regulations to oversee the operations of digital asset service providers, ensuring transparency, security, and accountability within the sector. These measures are crucial in promoting the long-term sustainability and credibility of the cryptocurrency market.
