Crypto Services to End by January 8, 2025

Crypto exchange Bybit will stop providing withdrawal and custody services to users in France starting January 8, 2025. The decision comes amid increasing regulatory scrutiny from French financial authorities.

Bybit has urged affected users to withdraw their funds before the deadline to avoid disruptions in accessing or transferring assets. 

Bybit’s Ongoing Regulatory Challenges

For any unclaimed funds exceeding 10 USDC, Bybit will transfer the holdings to Coinhouse, a licensed cryptocurrency custodian in France. Users must complete identity verification with Coinhouse to regain access to their transferred assets.

Accounts with balances below 10 USDC will face a termination fee of 10 USDC, which Bybit will deduct directly from the remaining funds.

“In light of recent developments by the French regulator, and in continuation of the restrictions we previously implemented in the country, we regret to inform you that, starting Jan 8, 2025, Bybit will no longer provide withdrawal and custody services to nationals or residents of the French Territories,” Bybit wrote. 

Bybit confirmed that asset transfers to Coinhouse would begin after January 8, 2025. During this period, withdrawals will be temporarily suspended, with the process expected to conclude by January 16, 2025. 

French users with verified Coinhouse accounts can expect their funds to appear shortly after January 16, provided their Bybit and Coinhouse account details match. 

However, those without a Coinhouse account will need to register and complete KYC verification to access their funds.

“Europe’s crypto regulation will be its biggest mistake since the dotcom era. EU imposing MiCA, US embracing crypto, major players leaving EU, and $499B+ in crypto flowing through Eastern Europe,” wrote influencer Alessandro Palombo.

Meanwhile, France maintains strict oversight of crypto entities operating without compliance. Recently, regulators in the country banned crypto-based betting platform Polymarket for violating gambling laws related to cryptocurrency wagers on political events.

Bybit’s challenges in France mirror regulatory pressures faced by crypto exchanges worldwide. In Japan, the Financial Services Agency (FSA) recently issued a formal warning to Bybit and four other overseas exchanges for operating without proper registration.

Also, Bybit’s operations have come under scrutiny through other legal proceedings. In October, the exchange reached a $225 million settlement with bankrupt exchange FTX. Proceeds from the settlement will contribute to FTX’s creditor repayment plan, scheduled to begin January 3, 2025.

The regulatory environment remains challenging for global crypto exchanges. Coinbase, for example, recently withdrew from Turkey, citing ongoing compliance issues. 

Binance and KuCoin have faced similar challenges in the country, underscoring the growing regulatory pressures on the crypto industry worldwide.