French Regulator Warns of Potential Bybit Website Blockade Amid Ongoing Non-compliance with National Standards

The French financial market authority, Autorité des marchés financiers (AMF), has issued a stark warning to investors about the potential blockade of the cryptocurrency trading platform, Bybit. This announcement follows a series of concerns highlighted by the AMF regarding Bybit's operational legality within France.

As of May 2022, Bybit has been on AMF's blacklist for failing to adhere to the regulatory standards required by French law. The AMF's recent statement underscores the continued absence of essential legal registrations that would allow Bybit to lawfully offer its services in the country. Specifically, Bybit has not registered as a Digital Asset Service Provider (DASP), a mandatory status for platforms that handle the sale, exchange, and storage of digital assets on behalf of others within France.

The lack of DASP registration renders any digital asset service operated by Bybit in France as illegal. This registration is crucial not only for maintaining public order but also for preventing money laundering and the financing of terrorism. Additionally, it ensures that special measures are in place to protect retail investors who might otherwise be exposed to significant risks without these safeguards.

The AMF's warning emphasizes the regulator's commitment to legal action if necessary to prevent Bybit from continuing its services in France. The authority's proactive stance reflects its duty to protect investors from platforms that operate without the required legal frameworks, which are essential for the safety and security of the financial market.

This development comes against the backdrop of a growing interest in cryptocurrency investments in France. A survey conducted in November 2023 indicated that cryptocurrencies are now the second most popular investment asset among the adult population in France. This rising popularity underscores the critical need for regulatory bodies like the AMF to enforce strict compliance with financial laws to ensure investor protection and market integrity in the face of burgeoning digital asset markets.