Originally published on: December 17, 2024
Bybit, a leading global cryptocurrency exchange, has announced its decision to cease withdrawal and custody services for users in France starting January 8, 2025, at 8:00 am UTC. This move comes in response to the heightened regulatory scrutiny faced by the company from French financial authorities.
Affected users are urged to withdraw their funds before the specified deadline to avoid any complications related to account access or fund transfers.
To facilitate the process, Bybit plans to transfer unclaimed assets exceeding 10 USD Coin (USDC) to Coinhouse, a licensed cryptocurrency custodian in France. Users will be required to undergo a verification process with Coinhouse to regain access to their holdings. For accounts holding balances under 10 USDC, Bybit will impose a termination fee equivalent to 10 USDC, which will be deducted from available assets.
The decision underscores the increasing regulatory pressures faced by global crypto exchanges as governments worldwide strive to enforce stricter regulations on the crypto industry.
Bybit has confirmed that Coinhouse transfers will commence after January 8, 2025, resulting in a temporary suspension of withdrawals during the transfer process, expected to last until January 16, 2025.
French users who hold a verified Coinhouse account will witness their assets being credited shortly after January 16, provided their account details match their Bybit identity and information.
Users in France who do not possess a Coinhouse account will be required to register and undergo a comprehensive Know Your Customer (KYC) verification process to access their funds.
Bybit has clarified that there will be no fees for converting assets to USDC or for transferring funds to Coinhouse. However, unverified Coinhouse accounts will incur a custody fee of 0.16% of the asset value or 1 USDC per month, whichever is higher, until successful KYC verification.
The announcement emphasizes that the custody fee will be applied monthly, starting on the first day of each month. The first fee will be charged on the day the assets are transferred to Coinhouse.
Users with a verified Coinhouse account matching their Bybit identity will not face any fees on the day of the asset transfer. Their assets should reflect in their account shortly after the transfer.
France has taken significant steps to enhance its regulatory framework for cryptocurrency service providers to ensure consumer protection and financial stability. In December 2022, the French Senate’s finance commission proposed expediting mandatory licensing for crypto firms to eliminate the option of operating crypto financial services without full authorization until 2026.
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