Bybit to End Services for French Users Amid Regulatory Pressures

Bybit has announced it will cease offering withdrawal and custody services to users in France starting January 8, 2025, amid rising scrutiny from French regulators.

Affected users are advised to withdraw their funds before the deadline to avoid disruptions in accessing or transferring their assets.

To assist users, Bybit will transfer any unclaimed funds exceeding 10 USDC to Coinhouse, a licensed French crypto custodian. Those wishing to access these funds must complete identity verification with Coinhouse. Accounts with balances below 10 USDC will incur a termination fee of 10 USDC, deducted from the remaining balance.

Bybit cited increasing regulatory restrictions in France as the reason for the decision. After the January 8 deadline, asset transfers to Coinhouse will begin, with withdrawals temporarily suspended until January 16, 2025. Funds will be accessible through Coinhouse for users who have verified their accounts, but those without a Coinhouse account must register and complete KYC.

The move comes as crypto exchanges face heightened regulatory challenges globally. Bybit has already faced legal hurdles in other jurisdictions, including a $225 million settlement with FTX in October.

Meanwhile, France’s tight regulations have led to the shutdown of crypto platforms like Polymarket, which violated gambling laws. Other exchanges, such as Binance and Coinbase, have also withdrawn from markets due to regulatory issues, highlighting the industry’s global compliance struggles.