Originally published on: December 17, 2024
Bybit, a renowned global cryptocurrency exchange, has announced its decision to cease withdrawal and custody services for its users in France starting on January 8, 2025, at 8:00 am UTC. This move comes amidst a surge in regulatory scrutiny from French financial authorities.
To ensure a smooth transition, Bybit is urging all affected users to withdraw their funds before the deadline to avoid any potential issues with account access or fund transfers.
In the event of unclaimed assets exceeding 10 USDC, Bybit plans to transfer them to Coinhouse, a licensed cryptocurrency custodian in France. Users will be required to undergo a verification process with Coinhouse in order to regain access to their holdings. For accounts with balances below 10 USDC, Bybit will apply a termination fee equal to 10 USDC, deducting it from the available assets.
This decision by Bybit underscores the increasing regulatory pressure faced by global cryptocurrency exchanges as jurisdictions worldwide seek tighter control over crypto activities.
Following the announcement, the transfer of assets to Coinhouse is scheduled to commence after January 8, 2025, temporarily pausing withdrawals during the process. This process is anticipated to conclude by January 16, 2025.
French users who hold a verified Coinhouse account can expect their assets to be credited shortly after January 16, provided that their account details match their identity on Bybit.
Users without an existing Coinhouse account in the country will be required to register and complete a full Know Your Customer (KYC) verification process to access their funds.
Bybit has clarified that there will be no charges for converting assets to USDC or transferring funds to Coinhouse. However, unverified Coinhouse accounts will be subject to a custody fee of 0.16% of the asset value or 1 USDC monthly—whichever amount is higher—until successful KYC verification.
Furthermore, the custody fee will be assessed monthly, starting on the first day of each month, with the initial fee being levied on the day the assets are transferred to Coinhouse.
Users who possess a verified Coinhouse account matching their Bybit identity will not face a fee on the asset transfer day. They should expect to see their assets reflected in their account shortly after transfer.
The regulatory landscape for cryptocurrency service providers in France has been reinforced to enhance consumer protection and financial stability. In a bid to eliminate the option to operate crypto financial services without full authorization, the French Senate’s finance commission proposed expediting mandatory licensing for crypto firms until 2026.
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