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The cryptocurrency exchange Bybit has experienced significant growth over the past year and, after five years of operation, has surpassed 20 million users. However, its expansion is not as dynamic in some regions due to local regulatory challenges.
One such example is France, where the local financial commission, AMF, blacklisted Bybit two years ago. Now, the national regulator issued a new warning to retail investors about the exchange, reminding of its lack of authorization in this part of Europe.
Under French law, digital asset service providers (DASPs) must register with the AMF before offering services connected to digital assets, including operating a crypto trading platform.
This mandatory registration helps “maintain public order though prevention of money laundering and terrorist financing, to verify the good repute and competence of its directors, or even to impose specific measures to protect retail investors,” the AMF stated.
Bybit, however, has not registered as a DASP and is therefore operating “illegally” in France. The AMF emphasizes that unregistered platforms providing these services are in violation of French law.
It turns out that the AMF issued a similar warning against another well-performing cryptocurrency exchange, Bitget, recently. Published over a month ago, the warning closely resembles the one concerning Bybit.
AMF Considers Legal Action, Urges Investor Caution
In addition, the AMF “reserves the right to take legal action to block the platform’s website” in France. The regulator is urging French retail investors who have invested through Bybit to take necessary measures to avoid losing access to their assets.
“All investors must make arrangements for the eventuality that the platform suddenly cease to provide services to the public residing in France.”
The AMF reminds investors to consult its whitelist of registered DASPs, available on its website, before investing in cryptocurrencies or related assets.
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