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France is opening up to applications from crypto-asset service providers but it's too little, too late for the likes of Bybit.
French markets regulator, Autorité des Marchés Financiers (AMF), has said it began accepting applications from crypto asset service providers as of 1 July, six months ahead of the European Union's Markets in Crypto-Assets (MiCA) regulatory framework taking effect.
MiCA represents a comprehensive set of regulations governing crypto-assets, including provisions for stablecoins. By December, regulations for crypto service providers will be operational.
In July, Circle, the issuer of the USD Coin (USDC) and Euro Coin (EURC) stablecoins, became the first global stablecoin issuer to achieve compliance with MiCA.
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The AMF listed ten crypto-asset services that will require EU authorisation from 0 December 2024 including "providing custody and administration of crypto-assets on behalf of clients" and "receiving and transmitting orders for crypto-assets on behalf of clients."
Crypto-asset service providers will also need to adhere to a standardized set of regulations, including anti-money laundering measures, counter-terrorism financing protocols, cybersecurity standards, and requirements for maintaining a good reputation and competence.
AMF added that these providers will "have until 30 June 2026 to obtain MiCA authorisation in order to continue providing their activities beyond 1 July 2026."
Nonetheless, crypto exchange Bybit has withdrawn from France, citing regulatory challenges. In a post on Thursday, Bybit said, "In light of recent regulatory developments from the French regulator, Bybit will stop offering our products and services to French nationals and residents."
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As of 2 August, French users have not been able to purchase any products from Bybit or add to their positions.
"Please wind down and close all of your open positions across all products and begin to withdraw your assets and funds and assets from your account," Bybit requested.
AMF blacklisted Bybit in May 2022, stating the exchange is "not authorised to provide its digital asset services in France."
In June, Bybit began offering its services to Mainland Chinese citizens but only if they're living overseas.
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The Dubai-based cryptocurrency exchange updated its Service Restricted Countries section of the exchange’s Terms of Service to state that Chinese citizens living outside of mainland China can sign up to Bybit using their Chinese ID or passports.
