In a recent development, France's financial regulatory body, the Autorité des Marchés Financiers (AMF), has issued a stern warning to investors regarding the trading of cryptocurrencies on the ByBit platform. ByBit, one of the world's largest crypto exchanges, has come under scrutiny for its non-compliance with existing regulations, prompting the AMF to blacklist the platform.

With a user base of over 20 million registered users as of 2023, ByBit has experienced significant growth in recent years. However, its failure to adhere to French regulations has led to its blacklisting by the AMF, prohibiting it from providing digital asset services in France.

"ByBit is not authorized to provide its digital asset services in France," stated the AMF notice, urging French investors to take necessary precautions to safeguard their assets invested on the platform.

The AMF emphasized that ByBit lacks a Digital Asset Service Provider (DASP) license in France, making its operations illegal under French law. The regulator retains the authority to pursue legal action to block access to the platform's website, underscoring the seriousness of the situation.

This warning from the AMF comes in the wake of similar actions against other crypto exchanges, including Bitget, which was blacklisted by the regulator in November 2023.

Furthermore, ByBit found itself on Hong Kong's radar when the Securities and Futures Commission (SFC) added the exchange to its list of suspicious cryptocurrency exchanges in March. Several products offered by ByBit were also placed on the SFC's list of suspicious investment products, highlighting concerns regarding investor protection and regulatory compliance.

In response, a spokesperson for ByBit stated that the exchange is engaged in ongoing dialogue with regulators worldwide, including in Hong Kong, and is committed to complying with all relevant regulations. The spokesperson assured users that products listed on ByBit are tailored to meet local compliance requirements and are not available in markets where they are deemed illegal or non-compliant.

As regulatory scrutiny intensifies in the cryptocurrency space, investors are urged to exercise caution and conduct thorough research before engaging with any crypto platform. The AMF's warning serves as a reminder of the importance of regulatory compliance and investor protection in the evolving landscape of digital asset trading.