Following regulatory directives, cryptocurrency exchange Bybit has announced that it will suspend the acceptance of new French customers starting on October 20. Specifying on its website, the firm declared it would no longer process identity verification requests from clients providing a French identity or address. This decision comes after Bybit was placed on the blacklist of the French Financial Markets Authority (AMF) in 2022, indicating it was not authorized to operate in France.
The French regulations are clear regarding cryptocurrency companies operating in the country. They must either obtain a PSAN registration (Digital Asset Service Provider) or a PSAN license to operate legally. Currently, 98 entities have a PSAN registration, while only Forge, a subsidiary of Société Générale, holds the license. Bybit had neither, highlighting the likely reason for its abrupt withdrawal from the French market.
Delayed Compliance Measures
It is worth noting that Bybit only initiated its KYC process (Know Your Customer) in May, a move to align with the upcoming European MiCa regulation. This initiative occurred long after many other cryptocurrency exchanges had implemented such compliance measures. Bybit, while expressing its commitment to meet regulatory requirements, did not disclose the exact number of French users affected by this change.
Founded in 2018 with its headquarters in Dubai, the company claims to serve “millions” of users worldwide, emphasizing the importance of its presence in the global crypto scene and the potential impact of its decision on the French market.