Bybit has announced its exit from the French market due to new regulatory developments under the EU’s Markets in Crypto-Assets （MiCA） legislation, highlighting the changing landscape for crypto exchanges in Europe.
Points
- Bybit to exit France citing regulatory developments under MiCA.
- MiCA regulation impacts stablecoin issuers and crypto service providers.
- Bybit had not registered as a Digital Asset Service Provider （DASP） in France.
- Previous exits from Canadian and UK markets due to tightening regulations.
Bybit’s Strategic Withdrawal
Bybit has decided to exit the French market, citing the new regulatory framework under the Markets in Crypto-Assets （MiCA） legislation. Accounts in France will be restricted to a “close-only” mode, preventing users from adding new positions or purchasing products.
MiCA Regulatory Impact
The MiCA regulation, introduced by the European Commission in 2020 and ratified by the European Parliament in 2023, sets stringent guidelines for crypto providers and stablecoin issuers. These include capital and liquidity requirements, marketing oversight, anti-money laundering measures, and enhanced consumer protection protocols.
Compliance Challenges
The French financial markets regulator, Autorité des marchés financiers （AMF）, emphasized that Bybit had not registered as a Digital Asset Service Provider （DASP）. Unregistered platforms providing services in France are considered illegal under French law.
Bybit’s Global Strategy
Bybit’s withdrawal from France follows previous exits from the Canadian and UK markets due to tightening regulations. Despite these challenges, Bybit successfully launched operations in the Netherlands, indicating its willingness to engage with European regulators and adapt to new compliance requirements.
Conclusion
Bybit’s exit from the French market underscores the significant impact of the MiCA regulation on crypto exchanges operating in Europe. This move highlights the importance of regulatory compliance and the evolving landscape for digital asset service providers in the region.
解説
- Markets in Crypto-Assets （MiCA）: A comprehensive regulatory framework aimed at providing legal certainty and protecting investors in the cryptocurrency market across the European Union.
- Digital Asset Service Provider （DASP）: Entities that provide services related to cryptocurrencies, such as exchanges, wallet providers, and custodians.
- Close-Only Mode: A restriction that allows existing positions to be closed but prevents new positions from being opened or new products from being purchased.
These explanations provide insight into the regulatory challenges faced by Bybit and the broader implications for crypto exchanges in Europe.