France’s financial regulator, the Autorité des Marchés Financiers (AMF), cautioned French crypto investors on May 16 that Bybit is not authorized to operate in the country.

The AMF advised:

"The Autorité des Marchés Financiers (AMF) urges retail investors to exercise extreme caution regarding investment proposals targeting the French public by the digital asset trading platform BYBIT. BYBIT is not authorized to provide its digital asset services in France."

Bybit, according to CoinMarketCap, ranks as the third-largest crypto exchange globally by trading volume. Launched in 2017, the platform holds assets worth over $10 billion belonging to its users.

Listed as unauthorized since 2022

The AMF noted that Bybit has failed to comply with local regulations mandating registration as a digital asset service provider (DASP) under the Monetary and Financial Code.

Furthermore, Bybit has been on the AMF's blacklist since May 20, 2022, due to its non-compliance with these regulatory requirements.

As a result, the AMF stated it could take legal action against Bybit for operating without registration, potentially including blocking access to its website and other measures.

In response to this regulatory scrutiny, investors are advised to take precautions to protect their assets, as Bybit may abruptly cease operations in France. The AMF emphasized:

"The AMF advises French retail investors who have invested through this platform to take all necessary precautions to avoid being unable to access their assets (digital assets or digital asset derivatives). All investors should prepare for the possibility of the platform discontinuing services for the French public without notice."

As of the time of writing, Bybit had not responded to requests for comment from CryptoSlate.

This regulatory action aligns with France's broader efforts to establish comprehensive regulations governing crypto businesses operating within its jurisdiction. Observers of the market view these efforts as part of France's commitment to safeguarding investors against potential risks associated with the growing crypto industry.