Global cryptocurrency exchange Bybit announced on [date] that it will suspend withdrawal and custody services for French users starting January 8, 2025, at 8:00 AM UTC. This decision comes in response to increased regulatory oversight from French financial authorities.
What Happens to User Funds?
Bybit has outlined a plan to ensure a smooth transition for affected users. Funds exceeding 10 USDC will be transferred to Coinhouse, a licensed cryptocurrency custodian in France. Users will need to complete a verification process with Coinhouse to regain access to their holdings. For accounts with balances under 10 USDC, Bybit will impose a termination fee of 10 USDC.
Post-Deadline Implications
After January 8, 2025, Coinhouse will initiate the transfer process, temporarily halting withdrawals until January 16, 2025. Verified Coinhouse users whose account details match their Bybit information will have their assets credited shortly after this date. Users without a Coinhouse account will need to register and complete a full KYC verification process to access their funds.
Fees and Charges
Bybit has clarified that there will be no fees for converting assets to USDC or transferring funds to Coinhouse. However, unverified Coinhouse accounts will incur a monthly custody fee of 0.16% of asset value or 1 USDC, whichever is higher. This fee will be charged starting from the day the assets are transferred to Coinhouse. Verified Coinhouse users will not incur this fee.
France has been actively strengthening its regulatory framework for cryptocurrency service providers. In December 2022, the French Senate proposed expediting mandatory licensing for crypto firms, aiming to eliminate the option of operating without full authorization. This move reflects a broader global trend of increasing regulatory scrutiny on the cryptocurrency industry.
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Bybit’s decision to halt services for French users underscores the evolving regulatory landscape and the challenges faced by global crypto exchanges in adapting to varying jurisdictional requirements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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