French Regulator Renews Warning Against Blacklisted Bybit

The French securities regulator, the Autorité des Marchés Financiers (AMF), has issued a renewed warning against using the digital asset platform Bybit. The AMF reminded French investors that Bybit is an unregistered crypto platform operating illegally in the country. The regulator has advised French investors who use Bybit to take all the necessary precautions to safeguard their investments.

French Regulator Blacklists Bybit for Non-Compliance

The French Securities Regulator, also known as the Autorité des Marchés Financiers (AMF), has issued a renewed warning against the digital asset exchange platform Bybit. The AMF advises retail investors to exercise caution when dealing with Bybit, as the platform has been blacklisted since May 20, 2022, due to non-compliance with French regulations.

In a statement released on May 16, the AMF informed French residents that it reserves the right, under the country’s Monetary and Financial Code, to take legal action to block Bybit’s website. According to the regulator, any entity providing or intending to offer digital asset-related services in France must undergo prior mandatory registration as a digital asset service provider (DASP).

This registration process helps French authorities combat money laundering and terrorism financing activities while ensuring the suitability and competence of DASP directors. Additionally, it allows the regulator to enforce specific measures to protect retail investors. Given Bybit’s lack of mandatory registration, the AMF told French investors using the platform to take all necessary precautions to safeguard their investments.

“In this regard, the AMF is urging French retail investors who have invested on this platform to take all necessary measures to avoid being unable to access their assets (digital assets or digital asset derivatives). All investors must make arrangements for the eventuality that the platform suddenly ceases to provide services to the public residing in France,” the AMF said in a statement.

To investors who want to determine a DASP’s status before committing their funds, the AMF recommends visiting its website to access a white list of registered providers.

By warning investors of the risks associated with using Bybit, the French regulator joins the Hong Kong Securities and Futures Commission (SFC), which similarly advised investors to exercise caution when using the unregistered platform. The SFC also stated that it may take legal action against Bybit if it continues to violate Hong Kong’s securities regulations.

What are your thoughts on this story? Let us know what you think in the comments section below. #Write2Earn