Bybit to Halt Withdrawal Services for French Users Amid Regulatory Changes by January 2025

• Bybit, a leading global cryptocurrency exchange, is set to suspend withdrawal and custody services for its French users due to mounting regulatory scrutiny, effective January 8, 2025.

• This decision underscores the increasing pressures faced by cryptocurrency platforms as they navigate tighter regulations across Europe, particularly in France.

• According to a spokesperson from Bybit, “We encourage our users to follow the outlined steps carefully to avoid any disruptions in accessing their funds.”

Bybit will suspend custody and withdrawal services for French users on Jan. 8, 2025, reflecting growing regulatory challenges in the crypto sector.

What Happens After the Deadline?

In its detailed announcement, Bybit specified that the transfer of assets to Coinhouse will begin after the deadline on January 8, 2025. During this transition, withdrawals will be temporarily paused, with the process estimated to conclude by January 16, 2025. This means affected users are encouraged to act promptly before the cutoff date.

Once the transfer is completed, French users who have verified their Coinhouse accounts will see their assets credited, provided their account information is consistent with that held by Bybit. Those who have not yet established a Coinhouse account will have the opportunity to register; however, they must undergo a comprehensive Know Your Customer (KYC) verification to reclaim their funds.

Asset Management and Custody Fee

Bybit has assured users that there will be no fees associated with the conversion of assets into USDC or the transition of funds to Coinhouse. Nevertheless, users maintaining unverified accounts with Coinhouse will incur a custody fee amounting to either 0.16% of the asset’s value or a flat rate of 1 USDC monthly, whichever is higher, until successful KYC verification is completed.

It’s important to highlight that this custody fee will be applied monthly, specifically on the first day of each month. The first charge will occur when the assets are transferred to Coinhouse. Conversely, users with verified Coinhouse accounts matching their Bybit identities won’t face any charges on the date of the asset transfer and should anticipate seeing their holdings promptly reflected in their account.

France’s Escalating Crypto Regulatory Measures

Amid rising concerns over consumer protection and financial stability, France has enhanced its regulatory framework for cryptocurrency service providers. In December 2022, the French Senate proposed measures to hasten the mandatory licensing process for crypto firms, aiming to tighten the regulatory grip ahead of the 2026 deadline.

This move arose partly in response to disruptions in global financial markets, which heightened scrutiny on unregulated crypto services. As a result, the Autorité des Marchés Financiers (AMF) reinforced the necessity for crypto firms to operate with fully authorized licenses, leaving no room for non-compliance.

Impact on Cryptocurrency Landscape in France

The intensification of regulatory frameworks can have far-reaching implications for the future of cryptocurrency in France. With tighter regulations, firms must adapt swiftly to comply, possibly impacting their operations and service offerings. This regulatory shift aims not only to enhance consumer safety but also to foster a healthier, more robust financial ecosystem.

As firms like Bybit navigate these changes, it’s essential for users to remain informed about their rights and responsibilities within an evolving regulatory landscape.

Conclusion

The regulatory landscape for cryptocurrency in France continues to evolve, as evidenced by Bybit’s recent announcement. Users must act quickly to secure their assets prior to the upcoming deadline. This scenario encapsulates a broader trend where cryptocurrency exchanges will need to meet stricter compliance requirements amidst increasing scrutiny. For users, staying abreast of these developments is critical to ensuring the safety and accessibility of their investments moving forward.