Bybit, a global cryptocurrency exchange, has announced that it will cease providing withdrawal and custody services to its French users starting January 8, 2025.
This decision comes in response to increasing regulatory scrutiny from French financial authorities, aligning with the broader trend of tightening oversight over crypto operations across various jurisdictions. Bybit noted in the announcement:
It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations. In light of recent developments by the French regulator, and in continuation of the restrictions we previously implemented in the country, we regret to inform you that, starting Jan 8, 2025, Bybit will no longer provide withdrawal and custody services to nationals or residents of the French Territories (“French Users”). We kindly ask that you ensure all assets are withdrawn before this date.
Affected users have been advised to withdraw their funds before the deadline to ensure uninterrupted access.
Transition Process for French Users
To facilitate the transition, Bybit has outlined a pathway for French users to access their funds post-deadline. Users with balances exceeding 10 USDC who fail to withdraw their funds will see their assets automatically transferred to Coinhouse, a licensed cryptocurrency custodian in France.
However, they must complete a full Know Your Customer (KYC) verification process to regain access to their holdings. Users with verified Coinhouse accounts matching their Bybit account details will have their assets credited shortly after January 16, 2025.
The company has assured users that no fees will be charged for converting funds to USDC or transferring them to Coinhouse. For unverified Coinhouse accounts, a monthly custody fee will apply, amounting to 0.16% of the asset value or 1 USDC, whichever is higher.
This fee will be deducted starting when the assets are transferred to Coinhouse and will continue to apply on the first day of each subsequent month until successful KYC verification is completed.
The company has assured users that no fees will be charged for converting funds to USDC or transferring them to Coinhouse. For unverified Coinhouse accounts, a monthly custody fee will apply, amounting to 0.16% of the asset value or 1 USDC, whichever is higher.
This fee will be deducted starting when the assets are transferred to Coinhouse and will continue to apply on the first day of each subsequent month until successful KYC verification is completed.
Bybit has urged users to take immediate action to avoid complications. French users who complete the verification process with Coinhouse and ensure their account details match those on Bybit will not incur any custody fees or delays in fund access.
Regulatory Challenges For The Industry
The decision to halt services in France highlights the mounting regulatory challenges global cryptocurrency exchanges face.
Governments and financial regulators worldwide seem to be tightening their oversight for the crypto market. France’s regulatory framework reflects these efforts, particularly its focus on crypto custodians and exchanges.
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