Bybit, a well-known cryptocurrency exchange, has announced that it will stop offering withdrawal and custody services in France starting from January 8, 2025. This decision is part of Bybit's efforts to comply with local regulations and restructure its business in the region.
Bybit has developed a transition plan that involves transferring user funds to Coinhouse, a regulated French crypto-asset platform, to ensure that users can still access their assets during this transition.
During the transition, accounts with balances of 10 USDC or less will be charged a termination fee of 10 USDC before being closed permanently. For users with balances exceeding 10 USDC, their funds will be converted to USDC at the prevailing market rate and then transferred to Coinhouse. This approach aims to make the transition smooth for users while adhering to the regulatory framework in France.
To facilitate the fund transfer, there will be a temporary halt on withdrawals from January 8 to January 16, 2025. After this period, users who have verified Coinhouse accounts corresponding to their Bybit accounts can expect their balances to be credited shortly after January 16.
Bybit emphasizes the importance of users registering for Coinhouse accounts and completing the Know Your Customer (KYC) verification process to avoid additional charges. Users without a Coinhouse account are advised to register promptly and complete the KYC process. If they fail to do so, they will still have their funds transferred but will incur a monthly custody fee from Coinhouse, which is set at 0.16% of the asset value or 1 USDC, whichever is higher. This fee will be charged on the day of the transfer and on the first day of each subsequent month until KYC verification is completed.
Bybit's decision to cease operations in France reflects the challenges faced by cryptocurrency exchanges worldwide in terms of regulation. Regulatory bodies are increasingly scrutinizing crypto platforms to ensure compliance with local laws and protect investors. The transfer of user funds to a regulated platform like Coinhouse is a trend among crypto exchanges to partner with compliant entities and navigate the complex regulatory environment.
As the cryptocurrency market matures, exchanges will likely face more pressure to demonstrate adherence to regulatory standards, which may result in further operational changes and partnerships in the future.
Bybit's transition plan highlights the importance of user engagement in the process. Users need to complete the necessary steps to avoid additional fees, ensuring they can maintain access to their funds and avoid disruptions during the transition period. As the regulatory landscape evolves, both exchanges and users must remain vigilant and adaptable to the changing environment.