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French Government Investigates Bybit for Regulatory Violations

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French Government Investigates Bybit for Regulatory Violations

  • Bybit reiterated its desire to adhere to local regulations while mentioning its prior plan to leave.
  • The AMF has threatened legal action to prohibit Bybit’s access inside France.

The French government has now begun to investigate the cryptocurrency exchange Bybit for possible regulatory violations. This comes regardless of reaching a worldwide user milestone of 20 million after five years of operation.

Regarding Bybit’s unlawful status in the region, the French financial regulatory authority, the Autorité des Marchés Financiers (AMF), recently reminded retail investors. This continues the exchange’s persistent problems with complying with French regulations, which began with a blacklist action two years ago. Bybit has not yet met the legal criteria to register as a digital asset service provider (DASP) in order to operate inside France, as highlighted in the AMF’s warning.

Unexpected Service Interruptions

As a response, Bybit reiterated its desire to adhere to local regulations while mentioning its prior plan to leave the French market in October 2023. Furthermore, the exchange highlighted its dedication to regulatory compliance by mentioning that it is now in talks with the AMF to get the required license. However, the AMF has threatened legal action to prohibit Bybit’s access inside France due to the absence of a formal registration, which makes its activities unlawful under French law.

By enforcing strict restrictions, the AMF aims to preserve public order and protect investors. Methods to safeguard individual investors, conduct assessments of corporate executives’ abilities and honesty, and halt the funding of terrorism and money laundering are all part of this list.

In light of the vulnerability of unregistered digital asset services, the AMF recommends that investors who use Bybit to be ready for unexpected service interruptions. Additionally, before investing in cryptocurrencies, the regulatory authority recommends that investors check its official website for its whitelist of registered DASPs. 

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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