Bybit, a global cryptocurrency exchange, has announced that it will suspend withdrawal and custody services for French users starting January 8, 2025, at 8:00 AM UTC, in response to increasing regulatory scrutiny from French financial authorities.
The company has urged affected users to withdraw their funds before the deadline to avoid issues with account access or fund transfers.
For users with unclaimed assets exceeding 10 USDC, Bybit plans to transfer them to Coinhouse, a licensed cryptocurrency custodian in France. To access their funds, users will need to undergo a verification process with Coinhouse. For accounts with balances under 10 USDC, Bybit will charge a termination fee of 10 USDC, which will be deducted from the available assets.
This move highlights the growing regulatory pressure on global crypto exchanges, as many jurisdictions are tightening their regulations on cryptocurrency.
What will happen after the deadline?
Bybit stated that Coinhouse transfers will begin after January 8, 2025, with withdrawals temporarily paused during the process, which is expected to last until January 16, 2025.
French users with a verified Coinhouse account will have their assets credited soon after January 16, provided their account details match those on Bybit.
Users without a Coinhouse account will need to register and complete a full Know Your Customer (KYC) verification process to access their funds.
Asset Management and Custody Fees
Bybit clarified that there will be no fees for converting assets to USDC or transferring funds to Coinhouse.
However, unverified Coinhouse accounts will incur a custody fee of 0.16% of the asset value or 1 USDC per month, whichever is higher, until successful KYC verification.
The custody fee will be applied monthly, on the first day of each month, but the first fee will be charged on the day the assets are transferred to Coinhouse.
Users with a verified Coinhouse account that matches their Bybit identity will not incur a fee on the transfer day and should see their assets reflected in their account shortly after the transfer.
France’s Increasing Crypto Regulation
France has been tightening its regulatory framework for cryptocurrency service providers, focusing on consumer protection and financial stability.
In December 2022, the French Senate’s finance commission proposed expediting the mandatory licensing process for crypto firms. This initiative seeks to eliminate the ability to operate crypto financial services without full authorization from the Autorité des Marchés Financiers (AMF) until 2026. This move was partly a response to global market disruptions and aims to ensure that all crypto firms are fully licensed.