French Regulator Warns Investors For Using ByBit Despite Ban
The Autorité des Marchés Financiers (AMF), France’s local financial commission, has issued a stern warning to investors, urging them to refrain from trading on the cryptocurrency platform, ByBit. The warning, published on Thursday, emphasizes the regulatory concerns surrounding ByBit’s operations in France.
ByBit’s Rapid Growth and Regulatory Issues
ByBit, one of the largest cryptocurrency exchanges globally, has seen significant growth recently, boasting 20 million registered users after just five years of operation as of 2023. Despite its global success, ByBit has faced scrutiny in France due to non-compliance with local regulations. This scrutiny culminated in the French regulator blacklisting the platform on May 20, 2022.
AMF’s Strong Stance Against Unregistered Platforms
The AMF’s notice explicitly states, “ByBit is not authorized to provide its digital asset services in France.” The commission has urged French retail investors who have invested on the platform to take all necessary measures to ensure access to their assets is not compromised.
Furthermore, the AMF highlighted that ByBit did not receive the required Digital Asset Service Provider (DASP) license to operate legally in France. The regulator also mentioned the potential for legal action to block the platform’s website, underscoring the illegal status of unregistered platforms under French law.
Ongoing Warnings and Similar Cases
The AMF’s warning against ByBit follows a similar advisory issued last month regarding the Bitget crypto exchange. Bitget was blacklisted in November 2023, and the AMF reminded users of the risks associated with unregistered platforms.
Hong Kong’s Regulatory Actions
Adding to ByBit’s regulatory challenges, Hong Kong’s markets regulator, the Securities and Futures Commission (SFC), placed ByBit on its list of suspicious cryptocurrency exchanges in March. The SFC also listed several of ByBit’s products as suspicious investment products, cautioning investors about the potential for complete loss of investment and indicating its willingness to take enforcement action if necessary.
ByBit’s Response to Regulatory Scrutiny
In response to these regulatory actions, a ByBit spokesperson stated that the exchange is maintaining “a close dialogue with regulators around the world, including HK,” and is striving to comply with all necessary regulations. ByBit has assured that products are tailored to meet local compliance requirements, ensuring that certain products are not available in markets where they do not meet regulatory standards.
ByBit’s ongoing regulatory challenges highlight the complexities and risks involved in the rapidly evolving cryptocurrency market, underscoring the importance of compliance with local laws to protect investors.
