Bybit in France Faces Uncertainty Amid Regulatory Changes

Bybit, a popular cryptocurrency exchange, has faced uncertainty in France due to regulatory changes. The company has been operating in the country since 2020, but recent developments have left its future unclear.

France has strict regulations for cryptocurrency exchanges, and Bybit has struggled to comply. The exchange has been accused of not meeting certain requirements, including registering with the French regulatory body, the Autorité des Marchés Financiers (AMF).

Bybit has been operating in France without proper authorization, which has raised concerns among regulators. The company has been given a deadline to rectify the situation, but its ability to do so is uncertain.

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The French regulatory framework is overseen by the Financial Markets Authority (AMF), which has specific requirements for crypto companies operating in France.

Any exchange of cryptocurrencies wishing to offer its services on French territory must be registered as a PSAN, a designation that has been in place since the 2019 Pact Law.

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The AMF has a blacklist of non-compliant exchanges, which Bybit found itself on in May 2022, alongside other exchanges like Bitget, Mexc, and Kucoin.

Bybit's failure to comply with local financial regulations led to its inclusion on the blacklist, where it remained for over two years.

The AMF withdrew Bybit from its blacklist in February 2025, recognizing the exchange's efforts to comply with French regulatory requirements.

Despite this victory, Bybit has chosen to temporarily suspend its services in France, including deposits, withdrawals, and trading of cryptocurrencies.

Here are the specific services that French users can no longer access on Bybit:

However, French users can still fund withdrawals to recover their cryptos and transfer them to another regulated platform.

Bybit's ban in France has significant consequences for users. French residents can no longer access Bybit's services, including creating an account, placing or withdrawing funds, trading derivative products, and using staking and crypto savings services.

French users who had open positions on Bybit had to close them by January 2025 to avoid automatic liquidation. This means that users had to take action to protect their investments.

Bybit is not entirely banned in France, but its services are suspended due to strengthened AMF controls. The platform has been removed from the black list, but it still needs to obtain a MiCA license to operate legally.

Users who had funds on Bybit can still withdraw them, allowing them to transfer their cryptos to another regulated platform. This is a crucial step for users who want to continue trading or investing in cryptocurrencies.

Here's a summary of the consequences of Bybit's ban in France:

Bybit's ban in France highlights the importance of regulatory compliance in the cryptocurrency industry. The platform's efforts to obtain a MiCA license demonstrate its commitment to operating legally and transparently.

The French regulatory framework has been tightening its grip on crypto exchanges, and Bybit's decision to suspend its services in France is a clear indication of this trend.

Bybit was added to the AMF's blacklist in May 2022, along with several other exchanges, for operating without proper registration.

The AMF withdrew Bybit from its blacklist in February 2025 after the exchange took steps to comply with French regulatory requirements.

However, Bybit chose to temporarily suspend its services in France, including deposits, withdrawals, and the guarding of cryptos.

This decision highlights the importance of staying informed about regulatory changes and acting swiftly to secure digital assets.

French authorities have made significant progress in supervising, monitoring, and regulating crypto assets, successfully bringing a large part of the digital assets market into the regulatory perimeter.

The FSB notes that trading and investment were the main use cases of crypto assets in France, with stablecoins mostly used for crypto-to-crypto transactions.

Bybit's exit from France emphasizes the increasing scrutiny and pressure on exchanges to align with evolving compliance frameworks in the French market.

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Bybit has set its sights on acquiring a MiCA license to gain full EU market access. This would allow the platform to operate freely across all 30 EEA nations.

Bybit still faces regulatory challenges in other key markets, such as Malaysia, where the Securities Commission ordered the exchange to halt operations due to non-compliance.

The exchange also suspended services in India following regulatory scrutiny, but later secured a local license after paying a $1 million fine.

Bybit is not alone in pursuing MiCA approval, as competitors like Bitget, OKX, and Crypto.com have all pursued or secured MiCA licenses to gain a foothold in the European region.

Bybit's decision to pursue a MiCA license is a strategic move to expand its operations in Europe.