Bybit has announced that it will stop offering withdrawal and custody services to its French users from January 8, 2025, due to increased regulatory scrutiny of cryptocurrency operations in France.

Bybit's decision to halt services in France reflects the increasing regulatory challenges facing cryptocurrency exchanges globally. Governments and financial regulators are focused on establishing frameworks to govern crypto custodians and exchanges, with a particular emphasis on compliance and oversight.

Bybit has outlined a transition process for affected users, stating that balances exceeding 10 USDC will be automatically transferred to Coinhouse, a licensed cryptocurrency custodian in France. However, users must complete a full Know Your Customer (KYC) verification process to regain access to their holdings.

Bybit has assured users that there will be no fees associated with converting funds to USDC or transferring them to Coinhouse. For users with unverified Coinhouse accounts, a monthly custody fee will apply.

Bybit's partnership with Coinhouse demonstrates the importance of working with licensed custodians to maintain compliance and protect user interests.

The decision to halt services in France indicates the challenges that lie ahead for the cryptocurrency industry as regulatory bodies worldwide seek a more structured approach to digital asset management.