Cryptocurrency exchange Bybit it will cease withdrawal and custody services for French users on Jan. 8, 2025, at 8:00 am UTC, in response to increasing regulatory scrutiny from French authorities.
Affected users are urged to withdraw their funds before the deadline. Any unclaimed assets over 10 USD Coin (USDC) will be transferred to Coinhouse, a licensed crypto custodian in France. To reclaim their holdings, users must complete Know Your Customer (KYC) verification with Coinhouse. Accounts with balances below 10 USDC will face a termination fee of 10 USDC, deducted from the available assets.
Bybit stated that Coinhouse transfers will begin after the deadline and may temporarily halt withdrawals until Jan. 16, 2025. Users with verified Coinhouse accounts matching their Bybit identity will receive their funds shortly after the transfer. Unverified accounts will incur a monthly custody fee of 0.16% or 1 USDC — whichever is higher — until KYC verification is completed.
ByBit has set French users’ accounts to a “close-only” configuration starting August 2, preventing the opening of new positions or deposits of new funds. In its announcement, ByBit said it hopes to return to the French market in the future once it secures the necessary regulatory licenses under French law.
On May 16, France’s securities regulator, the Autorité des Marchés Financiers (AMF), reiterated a warning to investors that Bybit is not registered as a digital asset provider in the country. The AMF stated that it had the authority to block the trading platform, which it claimed was “providing its services illegally” in France.
Despite its woes in France, the exchange launched Bybit.nl in the Netherlands on March 28, a new local trading platform compliant with Dutch regulations. The new offshoot offers local users access to cryptocurrency trading and educational resources.
France is also moving ahead with its plans to tighten regulation, supervision and oversight of cryptocurrency companies.
