Crypto Exchange Bybit Stops Operations in France Following Regulatory Tussle
Bybit exchange, which has been in a regulatory tussle with Autorite des Marches Financiers (AMF), has decided to halt operations. The firm has been in a tug-of-war with the French regulatory agency since 2022 after the platform was added to a blacklist.
At the same time, the Bybit exchange decided to halt operations in France and proceeded to restrict account access features for local investors as of 1st August 2024.
France to Implement Strict Crypto Regulations
The changes were mentioned in a press release issued by the firm on the same date. Bybit noticed that the regulatory changes taking place in the region were the leading cause of the recent halt.
Autorite des Marches Financiers (AMF) has been dubbed as the main reason for seizing operations for the platform within the European nation. Centralized exchange warned French investors that they would have to use restricted accounts or have close-only options available.
On this account, investors were unable to take up new trading positions or deposit more funds on Bybit. The restriction was activated from 2nd August 2024. On 13th August, 2024 all open trading positions on the platform were set to auto-liquidation and card services will also stop for French consumers.
The investors were able to withdraw funds out of the Bybit accounts using the card option. Bybit has retained that it intends to resume services after acquiring a license.
AMF Issues Warning Against Unregulated Crypto Trading Platforms
The AMF has been cracking down against unregulated crypto trading platforms within its jurisdiction. As of 16th May, the regulator issued warnings for public information sharing names of popular crypto trading platforms that are blacklisted in the region since 2022.
AMF also noticed that the platforms that do not have a Digital Asset Services Provider (DSAP) license can face legal consequences for operating. The regulatory also warned the public that the French authorities may shut down the site at any time.
In June, Bybit became the second-biggest exchange in terms of trading volume surpassing Coinbase. The platform also took a slice out of the Binance market share as the firm was undergoing regulatory scrutiny.
AMF started probing into Binance in 2023 while CZ was embattled against SEC in the United States. However, as a regulatory compliance measure, the agency sent an ultimatum to the trading platform. This led Zhao to let go of the equal stake in Binance France shares.
As per Binance France, two shareholders which are now proprietors of the firm were founding members of the trading platform. Meanwhile, another report covered the latest updates from Block Inc. which issued earning report for the second quarter of 2024.
The report indicated a 9% spike in Bitcoin profits YoY. In a letter to shareholders, Block Inc. noticed revenue toppling to $2.61 billion for the duration with net value earnings of $6.16 billion for the quarter and a 11% increase in comparison to the same duration for 2023.
Block’s Bitcoin Profit Increased 13%
The firm noticed that total profits from Bitcoin profits to be around $3.54 billion with a 13% increase on YoY. Block added Bitcoin profits as the total amount of Bitcoins purchased by investors on the platform.
The Cash app launched by the firm accounted for $4.13 billion in quarterly profits. The profit sans Bitcoin transactions was reported to be around $1.52 billion. Cash App made $67 million in gross profits for Bitcoin for the second quarter and indicated a 52% rise in comparison to the same duration in 2023.
Block Inc. noticed that Bitcoin gross profits were primarily recorded on account of average Bitcoin price elevation. The crypto gained 45% since the start of the ongoing year and trading at around $62K at press time. The firm further reported $70 million in losses from Bitcoin reserves.
At the conclusion of June, the platform held 8211 Bitcoins on the balance sheet listed for investments and the fair valuation of $515 million. The firm accumulated 173 Bitcoins during the second quarter.
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