ByBit exchange halts operations in France

Popular cryptocurrency exchange ByBit announced it is halting operations in France and restricting account features for French users in an Aug. 1 press release.

ByBit cited "recent regulatory developments" by France's financial regulator, Autorité des Marchés Financiers (AMF), as the catalyst for halting operations in the European country.

The centralized exchange cautioned French users that their accounts will be "restricted to close-only" configuration, preventing new positions from being opened or new funds from being deposited across ByBit's services and products beginning on Aug. 2.

From Aug. 13, all positions that were not closed will be automatically liquidated and card services will also be suspended for French clients, who will have the option of withdrawing any funds left over from their ByBit accounts.

ByBit concluded its announcement by telling French customers that ByBit looks forward to returning to the French market in the future once it has secured the proper regulatory licenses under French law.

Trouble with French regulators

The AMF issued a warning to French residents on May 16, reminding them that the popular cryptocurrency exchange has been blacklisted in the country since 2022. AMF claimed that the exchange failed to register as a Digital Asset Services Provider (DASP) and cautioned French investors that the site could be shut down at any time.

In June, ByBit surpassed Coinbase to become the world's second-largest exchange by trading volume, even chipping away at Binance's market share due to ongoing regulatory challenges globally for the world's largest cryptocurrency exchange.

France's AMF targeted Binance in December 2023 amid founder Changpeng Zhao's legal battle in the United States. In an effort to remain compliant with US sanctions, the financial regulator sent an ultimatum to the exchange, forcing Zhao to relinquish ownership of Binance France to shareholders with an equal stake in the company.

According to Binance France, the two shareholders who took ownership of the company were also founding members of the Binance exchange.