Bybit has announced its withdrawal from the French market effective August 13, limiting user transactions to fund withdrawals only. This decision follows increasing regulatory pressures as the European Union implements its Markets in Crypto-Assets (MiCA) regulation, which aims to establish a comprehensive framework for cryptocurrency providers.
The French financial commission, AMF, previously warned that Bybit was operating without proper registration as a digital asset service provider (DASP), labeling the exchange as illegal under French law. Bybit's compliance issues in France have been ongoing, and the platform has faced scrutiny since being blacklisted in 2022 for non-compliance.
Bybit’s exit from France is part of a broader trend, as the exchange has also withdrawn from markets in Canada and the U.K. due to tightening regulations. Currently, Bybit is not planning to serve several major markets, including the U.S., U.K., and China, while simultaneously expanding its operations in more compliant jurisdictions like the Netherlands.
The introduction of MiCA in the EU, which includes stringent regulations for stablecoins and oversight measures for cryptocurrency service providers, reflects an evolving regulatory landscape. While these changes are aimed at enhancing consumer protections and combating financial crime, they present challenges for exchanges like Bybit that seek to operate across multiple jurisdictions.
Despite these setbacks, Bybit remains a significant player in the crypto exchange market, ranking as the second-largest by trading volume, with over $5.5 billion traded recently. This position underscores the exchange's adaptability and continued relevance in the global crypto landscape, even as it navigates regulatory hurdles in key markets.
