Due to increasing regulatory pressure, Bybit will cease offering withdrawal and storage services to French users on January 8, 2025.
Global cryptocurrency exchange Bybit said it will cease withdrawal and storage services for French users starting at 8 a.m. (UTC) on January 8, 2025, due to increased scrutiny by French financial authorities.
The company advises affected users to withdraw funds before the deadline to avoid problems with bank access and money transfers. Bybit plans to transfer unclaimed assets over $10 in USD to the French-licensed cryptocurrency custodian Coinhouse. Users will need to complete a verification process through Coinhouse to regain control. For accounts with less than 10 USDC, Bybit will charge a termination fee equal to 10 USDC, which will be deducted from the available funds.
The move reflects the increasing regulatory pressure facing global cryptocurrency exchanges as regulators in many jurisdictions seek to impose stricter controls on cryptocurrencies.
What happens after the deadline?
Bybit said that Coinhouse transactions will begin after January 8, 2025, and that withdrawals will be suspended during this period, which is expected to last until January 16, 2025.
French users with verified Coinhouse accounts will see their funds on January 16 if their account information matches their identity and Bybit information. Users without a Coinhouse account in the country must register and complete a thorough know-your-customer (KYC) verification process to access their funds.
Asset management and maintenance fees
Bybit explained that there are no fees for converting assets to USDC or transferring funds to Coinhouse.
However, unverified Coinhouse accounts will be subject to a maintenance fee of 0.16% of the asset value or 1 USDC per month (whichever is higher) until the KYC verification is successful.
The maintenance fees “will be charged monthly, payable on the first day of each month,” the announcement said, but the first payment will be made on the day the assets are transferred to Coinhouse.
Users with verified Coinhouse accounts that match their Bybit identity will not be charged on the day of the asset transfer. They will “see their assets reflected in their accounts immediately after the transaction.”
France Strengthens Cryptocurrency Laws
France has strengthened the legal framework for cryptocurrency service providers and strengthened consumer protection and financial stability.
In December 2022, the French Senate’s Finance Committee announced that it would accelerate the licensing process for cryptocurrency companies to eliminate the option to operate crypto financial services without authorization until 2026.
The move is partly a response to the global financial market turmoil and aims to end the option to operate without authorization from the French Financial Supervisory Authority.
