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Bybit, a global cryptocurrency exchange, said it will halt withdrawal and custody services for French users starting Jan. 8, 2025, at 8:00 am UTC, amid an increase in regulatory scrutiny by French financial authorities.
The company advised affected users to withdraw their funds before the deadline to avoid complications with account access or fund transfers.
Bybit plans to transfer unclaimed assets exceeding 10 USD Coin (USDC) to Coinhouse, a licensed cryptocurrency custodian in France. Users will need to complete a verification process with Coinhouse to regain access to their holdings. For accounts with balances under 10 USDC, Bybit will impose a termination fee equivalent to 10 USDC, deducting it from available assets.
The move reflects growing regulatory pressures on global crypto exchanges as legislation in many jurisdictions looks to get a tighter grip on crypto.
Related: US crypto exchange Gemini launches in France after DASP registration
What happens after the deadline?
Bybit said Coinhouse transfers will commence after Jan. 8, 2025, temporarily halting withdrawals during the process, which is expected to last until Jan. 16, 2025.
French users with a verified Coinhouse account will see their assets credited shortly after Jan. 16, if their account details match their Bybit identity and details.
Users in the country without a Coinhouse account will be expected to register and complete a full Know Your Customer (KYC) verification process to access their funds.
Related: Société Générale, Banque de France complete blockchain repo transaction
Asset management and custody fee
Bybit clarified that there would be no fees for converting assets to USDC or transferring funds to Coinhouse.
However, unverified Coinhouse accounts will incur a custody fee of 0.16% of asset value or 1 USDC monthly — whichever is higher — until successful KYC verification.
The announcement said that the custody fee “will be applied monthly, on the first day of each month,” but the first fee will be charged on the day the assets are transferred to Coinhouse.
Users with a verified Coinhouse account matching their Bybit identity will not incur a fee on the day of the asset transfer. They should “see their assets reflected in their account shortly after transfer.”
Related: France considers ban on crypto betting platform Polymarket
France’s escalating crypto regulatory measures
France has intensified its regulatory framework for cryptocurrency service providers and enhanced consumer protection and financial stability.
In December 2022, the French Senate’s finance commission proposed expediting mandatory licensing for crypto firms to eliminate the option to operate crypto financial services without full authorization until 2026.
The initiative was partly in response to global market disruptions and aimed to end the option of operating without a license from the Autorité des Marchés Financiers.
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