The Autorité des Marchés Financiers (AMF), France’s financial regulatory body, recently issued a fresh warning to investors against the crypto exchange Bybit.
In a notice released on Thursday, the financial regulatory body said that Bybit was unregistered as a Digital Asset Service Provider (DASP) in France. Consequently, its services were illegally offered in the country, adding that its customers should prepare for the eventuality that would arise from a sudden cessation of the trading platform's services in the French nation.
DASPs Registration Mandatory In France
According to French law, all Digital Asset Service Providers (DASPs) must register with the AMF to offer services related to digital assets, including operating a crypto trading platform legally within the country's marketplace.
The mandatory registration aims to help maintain public order by discouraging illegal financial transactions, verifying the reputation of exchanges' leaderships, and ensuring that retail investors patronize only registered exchanges.
Unfortunately, the AMF noted that not only is Bybit unregistered as a DASP with the AMF, but the crypto exchange had entered its list of erring exchanges two years ago following its inability to comply with regulatory laws. Hence, the recent warning against investing with the crypto exchange.
As part of concentrated efforts to protect crypto traders from patronizing unregistered trading platforms, the French regulatory body advised investors to always confirm the authenticity of registered DASPs on its official website before investing in any exchange company.
Bybit Working To Obtain License From France Authorities
Commenting on the notice, a Bybit representative allayed the exchange's users' fears, assuring them that the trading platform executives are working closely with the AMF to obtain a license.
Furthermore, the spokesperson stated that Bybit's decision to exit the French nation's local market in October 2023 was part of the trading platform's efforts at full compliance with local regulations, underscoring the exchange's stance on regulatory conformity.
Meanwhile, AMF's heightened scrutiny is popping up at a period characterized by increasing regulatory restrictions that have seen several trading platforms halt operations in different countries.
In one of our previous news articles, we reported that KuCoin has joined the likes of OKX and Binance in halting Peer-to-Peer (P2P) services in Nigeria. In addition, OKX exited the Indian market space in March after the Indian Financial Intelligence Unit (FIU) accused it and eight other exchanges of illegal operations in the country, underscoring the uncertainty ravaging trading platform operations across the globe.
