Bybit Leaves French Market Due To MiCA Regulation Change

Bybit left the French market due to changes in MiCA regulations (Photo; Doc. Wallex)

JAKARTA - Bybit, has taken the decision to leave the French market. This move was taken in response to regulatory changes triggered by the Markets in Crypto-Assets Regulation (MiCA) rules issued by the European Union. This decision adds to the length of the list of crypto exchanges leaving France due to increasingly stringent regulatory pressures.

Quoted from CCN, starting August 13, Bybit users in France can only withdraw existing funds, without the option of opening new transactions or buying additional products. User accounts in France have been moved to close-only' mode that prevents further buying or trading activities.

The move has drawn dissatisfaction among the crypto community, which is concerned about France's increasingly strict and deemed unfriendly to the industry. Previously, Binance, the world's largest crypto exchange, also suspended its operations in France in 2023, raising questions about the future of the crypto business in the country.

Bybit operations in France have been under the supervision of local authorities for some time. In May, Autorite des Marchés Financiers (AMF) stated that Bybit operates without proper registration as a digital asset service provider (DASP), which is a mandatory requirement under French law. This led Bybit to a blacklist last year for non-compliance with French regulations.

Bybit's decision to leave France was also influenced by the broader impact of the MiCA regulation imposed by the European Commission. This rule, which is part of a comprehensive digital financial package, sets strict guidelines for crypto service providers and stablecoin publishers. With the implementation of this regulation, Bybit, along with many other exchanges, is reassessing their service strategy across Europe.

All EU member states are expected to fully implement this MiCA provision by the end of December 2024, which will bring significant changes to market operations and consumer protection measures.

With Bybit's departure from France, the crypto exchange is now looking for a new location to establish its operational base. A number of countries have emerged as promising options, offering a conducive regulatory environment and tax incentives to attract businesses and investors.

Portugal is one of the countries that attracts attention with profitable tax conditions, where long-term crypto holdings are tax-free. This makes Portugal an attractive destination for crypto investors and companies.

The Netherlands is also known for its balanced regulatory framework, providing clear guidelines for crypto assets and initial coin offerings (ICO), as well as encouraging a supportive environment for blockchain startups and financial technology innovations.