French Regulator Renews ByBit Ban Warning: Avoid Non-Compliant Exchanges

ByBit has been under scrutiny in France for its lack of non-compliance with current regulations and was blacklisted in 20 May 2022.

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In Detail:

French authorities have issued a stern warning to investors, urging them to refrain from utilizing the cryptocurrency exchange platform Bybit. The Autorité des marchés financiers (AMF), France's financial markets regulator, initially blacklisted Bybit on May 20, 2022, due to its failure to comply with existing regulations. Yet, two years later, the exchange continues to operate in the country, prompting AMF to reiterate their warning.

According to the AMF statement, "Using services offered by actors not meeting the requirements laid down by French legislation subjects users to numerous legal and operational risks." These risks include difficulties in recovering funds, disputes regarding transaction validity, and vulnerabilities in protecting personal data and assets.

Bybit's non-compliant status derives from its absence of registration with the AMF, a requirement for providing cryptocurrency services to French residents. Registered platforms commit to applying specific consumer protection measures, preventing money laundering and terrorism financing, and submitting regular reporting to the regulator.

However, Bybit has failed to register with the AMF, placing it in violation of Article L. 54-10-6 of the French Monetary and Financial Code. The article mandates that providers of digital asset services establish themselves either as a société par actions simplifiée (simplified joint-stock company) or a branch office registered in France.

The AMF's repeated warnings serve as reminders of the ever-changing regulatory landscape governing digital assets. Staying informed about jurisdiction-specific rules and restrictions is imperative for investors wishing to navigate the cryptocurrency arena safely. Complying with local laws reduces the likelihood of encountering operational hazards or facing enforcement actions, thus preserving the longevity and prosperity of one's portfolios.

Investors are encouraged to exercise caution when selecting cryptocurrency service providers. Diligent research, cross-referencing available resources, and confirming compliance with pertinent statutes help mitigate potential pitfalls lurking within the expansive and dynamic digital asset universe.