Bybit Announces Suspension of Services for French Users Starting January 2025

Bybit to Suspend Services for French Crypto Users: Key Dates and Actions Required

Bybit, a leading global cryptocurrency exchange, has announced that it will suspend withdrawal and custody services for French users starting on January 8, 2025, at 8:00 am UTC, due to increasing regulatory scrutiny from French financial authorities. This decision is a response to France’s tightening regulatory stance on the cryptocurrency industry.

Withdrawal Deadline and Required Actions for French Users

Bybit has advised French users to withdraw their funds before the deadline to avoid complications with account access or fund transfers. Those who do not withdraw their funds by January 8, 2025, will have their unclaimed assets, exceeding 10 USD Coin (USDC), transferred to Coinhouse, a licensed cryptocurrency custodian in France. Users must complete a verification process with Coinhouse in order to regain access to their holdings.

For users with balances under 10 USDC, Bybit will charge a termination fee equivalent to 10 USDC, which will be deducted from the available assets. This move is part of Bybit’s ongoing response to increasing regulatory pressures facing cryptocurrency exchanges globally.

Coinhouse Transfers and Temporary Suspension of Withdrawals

Bybit has clarified that Coinhouse transfers will begin after January 8, 2025, with a temporary halt on withdrawals during the transfer process. This transfer process is expected to last until January 16, 2025, at which point French users with verified Coinhouse accounts will see their assets reflected in their accounts. However, users who do not have a Coinhouse account will need to register and complete the full Know Your Customer (KYC) verification process to access their funds.

Asset Management Fees and Custody Charges

While Bybit will not charge fees for converting assets to USDC or transferring funds to Coinhouse, unverified Coinhouse accounts will incur a custody fee of 0.16% of asset value or 1 USDC monthly, whichever is higher, until the KYC process is successfully completed. This custody fee will be applied monthly, on the first day of each month, with the first charge being applied on the day the assets are transferred to Coinhouse.

Users with verified Coinhouse accounts that match their Bybit identity will not incur any fees on the day of the asset transfer, and their assets will be credited shortly thereafter.

France’s Escalating Crypto Regulatory Measures

This move comes as France intensifies its regulatory framework for cryptocurrency service providers. In December 2022, the French Senate’s finance commission proposed fast-tracking mandatory licensing for crypto firms. The initiative aims to eliminate the option of operating without full authorization from Autorité des Marchés Financiers (AMF) until 2026. This development highlights the growing regulatory pressure on global crypto exchanges and reflects the country’s efforts to bolster consumer protection and financial stability in the crypto sector.

Bybit’s decision to suspend services and transfer assets to Coinhouse underscores the tightening regulatory environment for cryptocurrency exchanges and could signal similar moves by other global exchanges facing increasing pressure from local authorities.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.