Bybit Bids Adieu to France: Crypto Services to Halt in January 2025

Bybit, a popular crypto exchange, has announced it will stop offering withdrawal and custody services to users in France starting January 8, 2025. The move comes as French financial authorities tighten their regulatory grip on the crypto industry.

The company has urged users to withdraw their funds before the deadline to avoid any issues with accessing or transferring their assets.

What Happens to Unclaimed Funds?

For users with balances over 10 USDC who don’t withdraw in time, Bybit will transfer the funds to Coinhouse, a licensed cryptocurrency custodian in France. To regain access, users will need to complete identity verification with Coinhouse.

Accounts with less than 10 USDC will be hit with a termination fee of 10 USDC, which will be deducted from the remaining balance. This means users with small balances may lose their funds entirely.

Bybit’s Statement and Next Steps

“Starting January 8, 2025, Bybit will no longer provide withdrawal and custody services to nationals or residents of the French Territories due to recent regulatory developments,” the exchange said in a statement.

Asset transfers to Coinhouse will begin after January 8, and withdrawals from Bybit will be paused temporarily during this period. The process is expected to wrap up by January 16, 2025. Users with verified Coinhouse accounts should see their funds shortly after, as long as their account details on both platforms match.

If users don’t have a Coinhouse account, they’ll need to create one and complete the required Know Your Customer (KYC) checks to access their funds.

France’s Tough Stance on Crypto

France continues to keep a close eye on crypto companies operating without proper compliance. Recently, regulators banned the crypto betting platform Polymarket for violating gambling laws tied to political event wagers.

Bybit isn’t the only exchange under pressure. Regulators worldwide are increasing scrutiny on crypto platforms. In Japan, Bybit and four other exchanges were recently warned by the Financial Services Agency (FSA) for operating without proper registration.

Bybit has also faced legal challenges elsewhere. In October, it agreed to pay $225 million to settle claims with the bankrupt exchange FTX. The settlement funds will help repay FTX creditors, with payouts expected to start on January 3, 2025.