Following serious breaches, French cryptocurrency platform Bykep, formerly known as Keplerk, becomes the first company to undergo a delisting with immediate effect from the AMF’s PSAN list.
Bykep delisted from AMF NSP list
It’s a dismal historical first for the French cryptocurrency platform Bykep. And for good reason, the Autorité des Marchés Financiers (AMF) has announced its delisting with immediate effect from the list of Digital Asset Service Providers (DAPs)
The AMF and the @ACPR_actu announce the delisting of PSAN BYKEP SAS, with immediate effect. This procedure follows an audit revealing facts that call into question the conditions of its registration. Read more ➡️ https://t.co/E7yJ9fiUUACrypto pic.twitter.com/4USrfUvgJE
– AMF (@AMF_actu) September 28, 2022
This is therefore an unprecedented decision in the blockchain ecosystem and a reminder that status should not be taken for granted. Bykep had obtained its registration on 18 February 2021. The AMF explains that this removal from the list of PSANs follows an inspection by the Autorité de contrôle prudentiel et de résolution (ACPR) which exposed serious breaches:
The information collected by the ACPR during its inspection investigations and transmitted to the AMF showed, in particular, that transactions had been carried out on customer portfolios without their consent. It also showed serious failings in the AML/CFT system, particularly in the management of Know Your Customer files […].
The AMF release also notes that the platform suffered a €300,000 asset theft on 8 September during a hack. The financial watchdog has asked Bykep to inform its clients as soon as possible and specifies that this could lead to legal proceedings.
From tobacco shops to mobile app
Before it was called Bykep, the platform was known as Keplerk. It sold coupons redeemable for Bitcoin (BTC) in tobacco shops and this particularity had led Bruno Le Maire to make a shortcut, two years ago now, according to which these practices allowed the financing of terrorism.
It should be noted that while Bykep’s mobile application can still be downloaded, its website seemed inaccessible at the time of writing. These events raise serious doubts about the company’s continued operation, especially as the most recent customer reviews are not very encouraging:
Figure 1: Bykep user reviews on the Google Play Store
On Trustpilot, a person also explained last July that the platform had lost its transfer of 8,500 euros and that they had no concrete news from Bykep’s services:
Figure 2: Trustpilot opinion about Bykep
Moreover, the theft of funds from Bykep is an opportunity to remind us that simple PSAN registration is not a guarantee of the security of our assets on a given platform. The AMF explains, in fact, that such further checks depend on the approval:
The AMF reminds us that registration as a PSAN does not entail any verification by the authority of information systems security. The law provides for the verification of information systems security only for PSANs with a licence, which is not the case for BYKEP SAS (PSAN only registered). “
To date, no company has yet been granted PSAN approval.
