The cryptocurrency landscape in France has taken a significant turn as Bybit, a major global exchange, announced it will cease operations for French users. This decision marks the latest development in France’s ongoing efforts to tighten oversight of digital asset platforms and protect local investors.
Bybit Shuts Down Services for French Users
After years of operating without formal authorization, Bybit has officially confirmed its withdrawal from the French market. In a public statement, the exchange declared that, effective August 2, it will stop offering products and services to users based in France. This move comes in response to regulatory pressure from the Autorité des Marchés Financiers (AMF), France’s financial markets regulator.
Starting August 13, Bybit will automatically liquidate all remaining open positions for French customers—including spot trades, derivatives, trading bots, and structured products. Additionally, credit card deposits will be suspended. Affected users will only be allowed to withdraw their assets and funds from their accounts.
Bybit emphasized that this exit is not permanent. The company expressed its intention to return to the French market in the future, provided it can obtain the necessary regulatory approvals and licenses under France’s Digital Asset Service Provider (DASP) framework.
AMF’s Ongoing Crackdown on Unlicensed Platforms
This enforcement action didn’t happen overnight. Just over two months prior, in May 2025, the AMF issued a renewed public warning about Bybit. The regulator reminded investors that Bybit remains on its official blacklist due to unauthorized operations within the country. The AMF urged extreme caution, warning that using such platforms exposes investors to significant financial risks—especially if services are abruptly discontinued.
The roots of this conflict trace back to May 20, 2022, when AMF first blacklisted Bybit for operating illegally in France. At that time, the exchange failed to register as a Digital Asset Service Provider (DASP)—a mandatory requirement under French law for any crypto platform serving local clients. Despite repeated warnings, Bybit continued to serve French users without compliance, leading to its eventual shutdown announcement.
France’s proactive stance reflects a broader European trend toward stricter crypto oversight, particularly under the upcoming Markets in Crypto-Assets (MiCA) regulation. Regulators aim to ensure transparency, consumer protection, and financial stability by requiring all platforms to meet rigorous licensing and operational standards.
Contrast with Regulated Players: Coinbase and Circle
While Bybit exits, other major players are deepening their presence in France through full regulatory compliance.
Coinbase, one of the world’s largest crypto exchanges, successfully registered as a Virtual Asset Service Provider (VASP) in France. This allows it to legally offer trading and custody services to French clients while adhering to anti-money laundering (AML) and investor protection rules.
Similarly, Circle, the issuer of the USDC stablecoin, achieved a significant milestone by securing conditional DASP registration in France. More recently, Circle announced it received an Electronic Money Institution (EMI) license from French authorities. This makes Circle the first stablecoin issuer globally to operate under MiCA-compliant status, enabling it to issue EURC and USDC across the European Union with full regulatory backing.
These developments highlight a clear divide: platforms that proactively engage with regulators are being welcomed, while those operating in gray areas face exclusion.
👉 See how compliant crypto firms are shaping the future of finance in regulated markets.
Key Crypto Regulatory Trends in France
France has emerged as one of Europe’s most active jurisdictions in shaping crypto policy. Here are the core components of its evolving framework:
- DASP Licensing: All crypto service providers must register with AMF as a DASP. This includes exchanges, custodians, and advisory firms.
- MiCA Readiness: France is aligning its national laws with the EU-wide MiCA regulation, which will impose uniform rules on transparency, governance, and stablecoin issuance.
- Investor Protection Focus: The AMF prioritizes safeguarding retail investors through public warnings, educational campaigns, and strict enforcement against unlicensed entities.
- Innovation Support: Despite strict rules, France encourages blockchain innovation through regulatory sandboxes and partnerships with fintech startups.
This balanced approach aims to foster innovation while minimizing systemic risks—a model other EU countries may follow.
Frequently Asked Questions (FAQ)
Q: Why did Bybit shut down in France?
A: Bybit ceased operations because it failed to obtain the required DASP license from AMF. Operating without authorization violated French financial regulations, prompting regulatory action and the eventual exit.
Q: Can French users still access Bybit?
A: While the platform may still be technically accessible via VPNs or third-party apps, doing so violates both AMF guidelines and Bybit’s updated terms. Users are strongly advised against bypassing these restrictions due to security and legal risks.
Q: What happens to my funds on Bybit if I’m in France?
A: French users can no longer trade or deposit funds. However, they retain full access to withdraw their existing assets. All open positions were automatically closed by August 13.
Q: Is France banning cryptocurrency?
A: No. France is not banning crypto; instead, it is regulating it. Licensed platforms like Coinbase and Circle can operate freely. The goal is to create a safe, transparent market for digital assets.
Q: Will other exchanges leave France?
A: Exchanges that fail to comply with DASP requirements may face similar outcomes. However, many are choosing to seek licensing rather than exit, indicating long-term confidence in the French market.
Q: How does MiCA affect French crypto regulation?
A: MiCA harmonizes crypto rules across the EU. France’s DASP framework is largely aligned with MiCA standards, ensuring smooth integration once the EU regulation fully takes effect in 2025.
👉 Stay informed on which crypto platforms are compliant and ready for the MiCA era.
The Bigger Picture: Regulation vs. Access
The Bybit case underscores a growing reality: the era of unregulated global crypto access is ending. As governments implement stronger oversight, users must adapt by choosing compliant platforms that prioritize legal operation and user protection.
For investors, this means fewer shortcuts—but also greater security. Regulated exchanges offer insurance, audit trails, dispute resolution, and legal recourse—features often missing on offshore platforms.
Meanwhile, legitimate businesses are finding pathways to operate within the system. Circle’s EMI license and Coinbase’s VASP registration prove that cooperation with regulators leads to sustainable growth.
Final Thoughts
France’s handling of Bybit sends a clear message: compliance is non-negotiable. The country is building a crypto ecosystem where innovation thrives within clear legal boundaries. While short-term disruptions occur, the long-term vision is a safer, more trustworthy digital asset market.
As MiCA rolls out across Europe, similar regulatory shifts will likely unfold in other nations. For users, staying informed and choosing regulated services isn’t just advisable—it’s essential.
Whether you're an investor, trader, or observer, understanding these regulatory dynamics is crucial for navigating the future of crypto in Europe.
Core Keywords:
- Crypto regulation France
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- AMF crypto blacklist
- DASP license
- MiCA compliance
- Coinbase France
- Circle EMI license
- Virtual Asset Service Provider (VASP)