The French securities regulator AMF issued a warning on Baybit
AMF has blacklisted Bybit due to regulatory violations since May 2022. French investors urged to prepare for service shutdown. In addition to France, Bybit faces international scrutiny and is already out of Canada and England.
French securities regulator Autorité des Marchés Financiers (AMF) has issued a renewed warning notice to investors regarding cryptocurrency exchange Bybit.
The warning was due to Baybit's failure to comply with French laws, specifically its failure to register as a digital asset service provider (DASP), making its operations illegal in France.
A sudden exit from France is possible.
Investors are urged to be alert for the sudden termination of Baybit services in France.
The AMF emphasizes that it retains the authority to pursue legal action under the Money and Finance Act, including blocking Bybit's website.
Furthermore, retail investors are advised to take precautionary measures in case the platform becomes inaccessible so that they can have continuous access to their assets.
This cautious stance reflects similar regulatory measures taken against Bybit globally. In March, the Hong Kong Securities and Futures Commission (SFC) classified Bybit as an unlicensed exchange and added it to its list of suspicious platforms. This SFC action reflects concerns about Bybit's non-compliance with licensing requirements.
Woe to the Baybit controller
While Baybit has applied for licenses in countries such as Hong Kong, its history of regulatory challenges extends beyond France. Last year, the exchange pulled out of both Canada and the United Kingdom, citing regulatory pressures. These exits highlight Bybit's significant regulatory hurdles in various jurisdictions.
For French investors, the AMF warning serves as an important reminder to prioritize regulatory compliance and due diligence when dealing with cryptocurrency exchanges.
Baybit's illegal activity in France raises concerns about investor protection, highlighting the need to comply with regulatory frameworks.
Given these developments, French investors are advised to exercise caution and consider alternative platforms that comply with local regulations.
Additionally, being aware of regulatory updates and heeding warnings from financial authorities can help reduce the risks associated with unlicensed cryptocurrency exchanges like Bybit.
