French Financial Authorities Warn Against ByBit
The platform was blacklisted in May 2022 for non-compliance with French regulations
May 17, 2024 11:43 AM
Reading time: 1 minute, 43 seconds
TL;DR France's financial watchdog, AMF, has warned investors to avoid trading on the crypto platform ByBit. ByBit, a major global crypto exchange, has grown rapidly but faces regulatory scrutiny in France.
AMF Issues Warning
France's Autorité des Marchés Financiers (AMF) has warned investors sternly. On Thursday, the financial watchdog published a note advising against trading on the crypto platform ByBit. This is the latest move in the ongoing scrutiny of the platform's operations in France.
ByBit's Rapid Growth
ByBit has seen significant growth in recent years. The exchange, one of the largest globally, hit a milestone of 20 million registered users in 2023, just five years after its launch. Despite its success, the platform's regulatory compliance in France has yet to be questioned.
Regulatory Scrutiny in France
The AMF blocked ByBit on May 20, 2022. The agency cited non-compliance with current regulations as the primary reason. In its latest notice, the AMF stated, "ByBit is not authorized to provide digital asset services in France." It urged French retail investors to take necessary measures to safeguard their assets.
"Unregistered platforms providing these services in France are illegal under French law," AMF reiterated.
The AMF also stressed that ByBit did not receive a Digital Asset Service Provider (DASP) license in France. The regulator can legally block the platform's website if necessary.
Similar Warnings Against Other Platforms
This is not the first time the AMF has issued such warnings. Last month, the regulator cautioned investors against using the Bitget crypto exchange, which was blocked in November 2023 for similar reasons.
Hong Kong's Stand on ByBit
ByBit's regulatory troubles are not confined to France. Hong Kong's markets regulator added ByBit to its list of suspicious cryptocurrency exchanges in March.
The Securities and Futures Commission (SFC) also flagged several of ByBit's products as suspicious investment options. The SFC warned that investors risk losing their entire investment and may face enforcement actions.
A spokesperson for ByBit stated that the exchange maintains "a close dialogue with regulators around the world, including HK," and strives to comply with all necessary regulations.
"Since different products are listed for various regions to meet local compliance requirements, you can be confident that these products are not available in the HK market," the source revealed.
