The French Financial Market Authority (AMF) has taken action against Bybit, blocking access to its website due to unauthorized operations in France.
According to the latest statement from the AMF, Bybit crypto exchange lacks authorization to provide digital asset services in France. The regulatory body emphasizes that digital asset service providers (DASPs) are required to register with the AMF before offering services to the public, including operating a crypto trading platform.
This mandatory registration is aimed at maintaining public order by preventing money laundering and terrorist financing, ensuring the good reputation and competence of directors, and implementing measures to protect retail investors.
In addition to Bybit, Bitget also received a warning from the AMF for similar reasons. Bitget, like Bybit, is not registered as a DASP and has been providing digital asset services without complying with French regulations. Consequently, as of November 7, 2023, Bitget has been blacklisted by the AMF for non-compliance.
The action against Bybit and Bitget follows previous regulatory scrutiny in France, with media reports highlighting investigations into Binance’s French subsidiary for allegedly providing cryptocurrency services illegally and failing to meet anti-money laundering obligations.
However, in May 2023, Binance obtained a license as a crypto service provider from the French Financial Market Supervisory Commission, signaling a commitment to regulatory compliance in the French market.
Summary Review: The warning issued by the French Financial Market Authority against Bybit and Bitget underscores the importance of regulatory compliance in the cryptocurrency industry. With the increasing adoption of digital assets, regulatory bodies like the AMF are vigilant in ensuring that platforms adhere to necessary registration and operational standards to protect investors and maintain market integrity. Bybit and Bitget’s unauthorized operations in France highlight the risks associated with using unregistered platforms, including potential exposure to money laundering and terrorist financing. The AMF’s actions serve as a reminder to crypto exchanges to comply with regulatory requirements to avoid penalties and protect users. Furthermore, the case of Binance’s regulatory journey in France demonstrates the significance of obtaining proper licensing to operate legally in jurisdictions with stringent financial regulations. Binance’s successful licensing by the French Financial Market Supervisory Commission sets a positive example for other exchanges seeking to enter the French market. Overall, the AMF’s warning to Bybit and Bitget underscores the importance of regulatory compliance and serves as a call for all crypto exchanges to prioritize adherence to legal frameworks to ensure a safe and transparent environment for investors and stakeholders alike.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
