The Autorité des Marchés Financiers (AMF), France’s local financial commission, has issued a warning to investors to avoid trading on the crypto platform ByBit. ByBit, one of the largest crypto exchanges globally, has seen significant growth in recent years, reaching 20 million registered users after 5 years of operation in 2023. However, the platform has come under scrutiny in France for its lack of compliance with current regulations, leading to its blacklisting by the French regulator on 20 May 2022. The AMF emphasized that ByBit is not authorized to provide its services in France and urged French investors to take necessary measures to protect their assets, as the platform did not receive a DASP license in the country.
In addition to ByBit, the AMF has also warned investors against the Bitget crypto exchange, which was blacklisted in November 2023. The AMF reiterated that unregistered platforms providing services in France are illegal under French law, and the regulator has the authority to take legal action to block these platforms. Furthermore, in March, Hong Kong’s markets regulator added ByBit to its list of suspicious cryptocurrency exchanges and placed some of the platform’s products on its list of suspicious investment products. The Securities and Futures Commission (SFC) warned investors about the risks of losing their entire investment and stated that it will not hesitate to take enforcement action.
A spokesperson for ByBit stated that the exchange has been in close dialogue with regulators worldwide, including in Hong Kong, and is working to comply with all necessary regulations. The spokesperson also mentioned that different products are listed for various regions to meet local compliance requirements, ensuring that products not available in the Hong Kong market comply with regulations. Despite the platform’s efforts to comply with regulations, it has faced scrutiny in both France and Hong Kong for its lack of compliance, leading to warnings and blacklisting by regulators.
Overall, the warnings issued by the AMF in France and the SFC in Hong Kong highlight the importance of investors conducting due diligence before trading on cryptocurrency platforms. The blacklisting of ByBit and Bitget serves as a reminder of the risks associated with trading on unregistered platforms that do not comply with regulations. Investors are encouraged to be cautious and ensure that they are trading on authorized and compliant platforms to protect their assets and avoid any legal implications.
