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France: the crypto exchange Bybit is not complying with the country’s regulations

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Bybit, a well-known crypto exchange supported by the BitDAO ecosystem, was reported yesterday by the financial regulatory authority of France for non-compliance with registration requirements within the country.

The Autorité des Marchés Financiers (AMF) had already included the exchange in its blacklist, but now it could request the platform to be blocked in France before a judge.

Let’s see everything in detail below.

Crypto and regulation in France: AMF warns investors about Bybit’s illegal activities

Tensions continue in Europe between the crypto world and various local regulations: Yesterday the Autorité des Marchés Financiers (AMF), the financial regulatory body of France, warned investors about the illegal presence of the exchange Bybit in the country.

The cryptocurrency exchange platform, despite having its operational headquarters in Dubai, provides its services to French users even though it is not registered as a digital asset service provider (PSAN).

The AMF had already included Bybit in the blacklist of unauthorized financial operators in May 2022, but now reports that the site may be closed upon formal request to a judge.

These are the words of the French regulator in a press release:

Unregistered platforms that provide these services in France are illegal under French law. Bybit is not registered as a provider of digital asset services.”

Nous rappelons que la plateforme de #trading de #cryptoactifs BYBIT est inscrite sur liste noire : elle n’est pas autorisée à fournir des services sur actifs numériques en France.
L’AMF se réserve la possibilité de demander en justice le blocage du sitehttps://t.co/ZadhiUCLgH pic.twitter.com/lID1LC0LQs

— AMF (@AMF_actu) May 16, 2024

We are not talking about testimonies related to possible defaults of the company or fraudulent activities, such as those carried out by FTX until its fateful collapse in November 2022, but simply of the omission of some registration obligations.

France does not actually prohibit the implementation of services related to the provision of digital asset custody services on behalf of third parties, or the purchase, sale, and exchange of cryptocurrencies, but requires prior approval from the PSAN.

According to the regulatory body, this type of registration allows to preserve public order through the fight against money laundering and terrorism financing, to verify the integrity and competence of leaders, and to impose specific measures to protect savers.

Recently the AMF has added more crypto platforms to its blacklist, such as 24cryptoforestrading.net and cryptoneyx.io, but at the same time has approved the registration for Gemini, Coinbase and Circle.

We remind you that Bybit, unlike other crypto exchanges such as Binace, Coinbase, Gemini Gate, BitPanda and Young Platform, is not even registered in the virtual operators register at OAM, and therefore would operate without authorization even in Italian territory.

Same situation for Bybit in Hong Kong, where the special administrative region has issued a notice similar to the one released by the French financial regulatory authority.

In 2023, the exchange founded by investor Ben Zhou was forced to leave the markets of Canada and the United Kingdom due to financial obligations and lack of regulatory control.

However, it is worth noting how Bybit is trying to expand its presence worldwide, where regulations appear less restrictive: recently it has indeed launched a trading service in the Netherlands and in Kazakhstan.

The reputation of Bybit in the cryptocurrency exchange sector

Despite not being registered with regulatory bodies in several countries around the world, Bybit remains a pillar in the cryptocurrency exchange sector.

Currently according to the data from Coinmarketcap, the platform in the last 24 hours records a spot trading volume of 3.7 billion and a derivatives volume of 16.9 billion dollars. On February 24, 2024, it set its record for trading volumes, processing orders for over 71 billion dollars.

With these numbers, Bybit undoubtedly ranks in the TOP 5 of the best cryptocurrency exchanges in the world, also being able to rely on a solid and efficient infrastructure, supported by none other than the multibillion-dollar autonomous organization BitDAO.

The CoinGlass analysis service ranks Bybit 3rd in the ranking of brokers with the most open interest on BTC and 2nd for open interest on ETH.

Overall, it has about 12 billion open positions in derivative markets.

The user interface is simple and intuitive, and the platform offers very interesting advanced features such as launchpad, OTC trading, copy trading, debit card, etc.

Bybit is present in 160 different countries and has a user base of almost 30 million with 1219 cryptocurrencies listed on its platform.

According to Dune Analytics, in April 2023 Bybit’s total reserves amounted to approximately 1.6 billion dollars, with 950 million in stablecoins, 350 million in ETH, and around 300 million in BIT and other tokens. In October 2021, these data reached a historical peak at 2.2 billion dollars.

 

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