Bybit to Cease Crypto Services in France from January 2025

As a seasoned analyst with over two decades of experience in the financial sector, I’ve witnessed the ebb and flow of regulatory landscapes across various markets. The recent move by Bybit to halt services in France is yet another reminder of the ever-evolving regulatory environment in the crypto space.

Starting from January 8, 2025, the digital currency exchange Bybit is discontinuing its withdrawal and safekeeping services for users residing in France. This move follows growing regulatory oversight by French financial institutions.

Bybit advises users who have been impacted to remove their funds prior to the stated cutoff date, so they can prevent any issues with accessing or moving assets later on.

Bybit’s Ongoing Regulatory Challenges

If your funds remain unclaimed and surpass 10 USD, Bybit will move your holdings to Coinhouse, a reputable cryptocurrency custodian based in France that is fully licensed. To reclaim your transferred assets, you’ll need to finish the identity verification process with Coinhouse first.

As an analyst, I’d like to clarify that accounts holding less than 10 USDC will incur a termination fee of 10 USDC. It is important to note that this fee will be automatically deducted from the remaining balance in your account by Bybit.

Due to the latest measures taken by the French regulator and continuing our previous restrictions within the country, we are sorry to announce that as of January 8, 2025, Bybit will no longer offer withdrawal and custody services to both citizens and residents living in the French Territories.

According to Bybit’s announcement, asset transfer operations to Coinhouse will commence starting from January 8, 2025. Consequently, during this time frame, withdrawal functionality will be temporarily halted. The transition is anticipated to be completed by January 16, 2025.

Users with confirmed accounts on Coinhouse who are also registered with Bybit should find their funds transferred by around January 16th, as long as the information in both accounts matches.

Yet, if you don’t have an account with Coinhouse, you’ll need to sign up, go through the KYC process, and then you can manage your funds.

According to influential figure Alessandro Palombo, Europe‘s strict regulation of cryptocurrency could prove to be its most significant blunder since the dot-com era. The EU is implementing MiCA, while the US is adopting a more welcoming stance towards crypto, leading major players to exit the European Union. Additionally, an astounding $499 billion in crypto transactions are occurring through Eastern Europe.

In my experience as a crypto investor, France has been maintaining a close watch over crypto entities that don’t adhere to regulations. Lately, authorities in this country have taken action against the crypto-based betting platform Polymarket. They did so because the platform was found to be breaking gambling laws connected to cryptocurrency wagers on political events.

The regulatory hurdles experienced by Bybit in France reflect similar issues encountered by cryptocurrency exchanges globally. Notably, the Japanese Financial Services Agency (FSA) has issued formal warnings, including one to Bybit, as well as four other foreign platforms, due to their unauthorized operations within Japan.

Furthermore, Bybit’s activities have been subjected to review in various lawsuits. Notably, in October, it agreed on a $225 million settlement with the insolvent exchange FTX. The funds from this settlement will be used towards fulfilling FTX’s repayment plan to its creditors, which is set to commence on January 3, 2025.

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

In many parts of the world, Binance and KuCoin, much like other cryptocurrency platforms, are encountering comparable difficulties due to increasing scrutiny from regulators, highlighting the expanding regulatory tension within the global crypto sector.

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2024-12-17 21:36