In response to the heightened regulatory constraints, Bybit will terminate withdrawal and custody services for French customers on January 8, 2025.
In response to the heightened regulatory scrutiny by French financial authorities, Bybit, a global cryptocurrency exchange, has announced that it will suspend withdrawal and custody services for French users effective January 8, 2025, at 8:00 a.m. UTC.
In order to prevent complications with account access or fund transfers, the company recommended that affected users withdraw their funds prior to the deadline.
Bybit intends to transfer unclaimed assets exceeding 10 USD Coin to Coinhouse, a licensed cryptocurrency custodian in France. In order to regain access to their holdings, users will be required to complete a verification procedure with Coinhouse. For accounts with balances below 10 USDC, Bybit will impose a termination fee that is equivalent to 10 USDC and will deduct it from the available assets.
The action is indicative of the increasing regulatory pressures on global crypto exchanges, as legislation in numerous jurisdictions attempts to tighten its control over crypto.
Coinhouse transfers will commence after January 8, 2025, according to Bybit. Withdrawals will be momentarily suspended during this procedure, which is anticipated to last until January 16, 2025.
French users who have a verified Coinhouse account will receive a rebate for their assets shortly after January 16, provided that their account details correspond to their Bybit identity and details.
In order to access their funds, users in the country who do not have a Coinhouse account will be required to register and complete a comprehensive Know Your Customer (KYC) verification procedure.
Bybit clarified that there would be no fees associated with converting assets to USDC or transmitting funds to Coinhouse.
Nevertheless, until successful KYC verification, unverified Coinhouse accounts will be subject to a monthly custody fee of 0.16% of asset value or 1 USDC, whichever is greater.
The announcement stated that the custody fee would be applied on the first day of each month. However, the initial fee will be charged on the day the assets are transmitted to Coinhouse.
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