Photo credit: Bybit on X

Bybit is ceasing operations in France and discontinuing its crypto exchange products and services, effective from Aug. 2, amid French regulatory changes.

“It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations. In light of recent regulatory developments from the French regulator, Bybit will stop offering our products and services to French nationals and residents,” the exchange wrote in a blog post on Aug. 1.

Starting Aug. 2 at 08:00 UTC, French users will be “restricted to a close-only mode” on the platform, barring them from account deposits, opening or adding any new positions, and purchasing any products.

Bybit said it would only offer users to withdraw assets from their accounts from Aug. 13, after which remaining open positions will be liquidated and card services suspended.

“We apologize for any inconvenience this may cause and appreciate your support and cooperation as we step up our efforts to meet regulatory requirements,” the exchange said, adding that it looks forward to returning to the French market once it secures the necessary licenses to operate.

Bybit’s operations in France have long been rocky. On May 16, Autorité des marchés financiers (AMF), the country’s independent financial markets regulators, warned citizens that Bybit was not authorized to provide its services in France and had been blacklisted since 2022 “for non-compliance with French regulations.”

The AMF emphasized that Bybit, like other cryptocurrency exchanges, was required to register as a Digital Asset Service Provider (DASP) but had failed to do so.

“Unregistered platforms providing these services in France are illegal under French law. BYBIT is not registered as a DASP,” the regulator said at the time. “The AMF reserves the right, under the terms of the Monetary and Financial Code, to take legal action to block the website of this platform, which is providing its services illegally in France.”

Bybit’s exit comes as French regulators made amendments to its existing digital assets policy in preparation for the European Union’s Markets in Crypto-Assets (MiCA), first introduced in 2020.

The regulatory framework, which establishes guidelines for crypto providers and stablecoin issuers, was ratified by the European Parliament in April 2023 and came into force two months later. The stablecoin-specific regulations, including strict capital and liquidity requirements, became effective in June 2024.

Starting December 30, France and 26 other EU member states will implement the remaining MiCA provisions, which encompass stricter oversight of crypto marketing, enhanced anti-money laundering measures, and increased consumer protection protocols.

Read more: Italy central bank to issue guidelines on EU crypto rules