- Bybit will end withdrawal and custody services for French users by January 8, 2025.
- Unclaimed funds over 10 USDC will be transferred to Coinhouse, requiring user verification for access.
- France’s increased regulatory oversight pushes crypto firms to comply with tighter rules and licensing mandates.
Bybit, an international cryptocurrency exchange, announced it will stop withdrawal and custody services for users in France starting January 8, 2025, due to mounting regulatory pressure. French users are encouraged to withdraw their assets before the deadline to avoid issues accessing funds or transferring balances.
For accounts left untouched, Bybit will transfer holdings exceeding 10 USD Coin (USDC) to Coinhouse, a licensed custodian in France. Affected users will need to create a verified account with Coinhouse and pass its Know Your Customer (KYC) process to retrieve their funds. Accounts holding less than 10 USDC will face a termination fee equivalent to the remaining balance, leaving the accounts with no funds.
The decision highlights growing regulatory challenges faced by cryptocurrency platforms in Europe and elsewhere, as authorities work to implement stricter oversight of digital asset services.
Asset Transfers and Verification Process
Starting January 8, 2025, Bybit will begin the process of moving unclaimed funds to Coinhouse. During this transfer window, withdrawals will temporarily pause and are expected to resume by January 16, 2025. Users with existing and verified Coinhouse accounts will see their assets credited shortly after this date, provided their account information matches their Bybit identity.
Those without a Coinhouse account will need to sign up and complete KYC verification to access their funds. Coinhouse, being a regulated entity in France, follows strict compliance protocols, requiring users to validate their identity to manage crypto assets.
Bybit assured users that there would be no charges for converting funds to USDC or transferring assets to Coinhouse. However, a monthly custody fee will apply to accounts that remain unverified. The fee is set at either 0.16% of the asset value or 1 USDC, whichever amount is higher. The first fee will be charged on the day assets are transferred, with subsequent fees applied at the start of each month.
France’s Regulatory Environment Tightens
France has taken significant steps to tighten cryptocurrency regulation over the past two years, aiming to bolster consumer protections and ensure financial stability. In December 2022, the French Senate pushed to accelerate mandatory licensing for crypto firms. This proposal eliminated an earlier option that allowed service providers to operate without full authorization from the Autorité des Marchés Financiers (AMF).
The move was partly driven by concerns following global market disruptions, including major collapses that impacted investor confidence. Bybit’s suspension of services in France mirrors a broader trend where global crypto exchanges are adjusting operations to align with regional rules.
France’s regulatory push reflects an increasing commitment to holding crypto service providers accountable, ensuring they meet high standards for security and transparency. Bybit’s decision to collaborate with Coinhouse highlights the growing role of licensed custodians in navigating these stricter compliance requirements.
