Bybit has announced that it will cease withdrawal and custody services for users in France starting from January 8, 2025.
This decision comes after the French financial regulator, the Autorité des Marchés Financiers (AMF), blacklisted Bybit in May 2022 for operating without the necessary authorization.
Bybit had already restricted French users from purchasing new products or adding to existing positions since August.
The exchange is now urging users to withdraw their funds before the deadline.
For accounts holding more than 10 USDC, unclaimed balances will be transferred to Coinhouse, a regulated French crypto custodian, which will require users to complete KYC verification to regain access to their funds.
Smaller accounts with balances of 10 USDC or less will incur a termination fee, effectively nullifying these balances.
The regulatory environment for cryptocurrency exchanges in France has become stricter, with the AMF enforcing compliance and mandating firms to secure mandatory licensing by mid-2026.
Bybit's decision to withdraw from the French market reflects a lack of confidence in the regulatory process.
This trend raises questions about the future of crypto operations in Europe as regulators tighten their grip on the industry.
French crypto users now face limited options for trading and managing their digital assets.
They must act quickly to withdraw their funds and navigate KYC verification processes to regain access to their assets.
Bybit's withdrawal serves as a cautionary tale for other exchanges operating in jurisdictions with stringent regulatory frameworks.
The ability to navigate these challenges will be crucial for the survival and growth of crypto platforms.