ByBit, the second largest crypto exchange by trading volume, announced that it was leaving the French market beginning January 8th, 2025, citing regulatory hurdles. The exchange will temporarily stop withdrawals between January 8th and 16th, 2025, during the transfer of unclaimed digital assets for ByBit users with matching Coinhouse accounts.
The ByBit crypto exchange will no longer provide withdrawal and custody services to nationals or residents of the French Territories – ‘French users’ effective January 8th next year, the exchange Tuesday.
The affected users have been requested to transfer their digital assets to the Coinhouse exchange before the deadline to avoid losing their funds or paying extra fees.
ByBit users are urged to transfer digital assets before the deadline
Starting Jan 8, 2025, @Bybit_Official will no longer provide withdrawal and custody services to nationals or residents of the French Territories ("French Users").https://t.co/xE1SBGzZ9q pic.twitter.com/ISmn31Jfw9
— ICO Drops (@ICODrops) December 17, 2024
Accounts with 10 USDC or less will be charged a fee of 10 USDC and be closed permanently. Those with more than 10 USDC will incur the same fee amount, and then the difference will be forwarded to their corresponding Coinhouse accounts. Users without verified Coinhouse accounts will be required to open and verify the Coinhouse accounts through the necessary KYC process. All subsequent withdrawals will then be handled through their Coinhouse accounts.
All unclaimed digital assets still held on ByBit after the deadline will be transferred automatically between January 8th and January 16th, 2025, for ByBit users with matching Coinhouse accounts. Withdrawals will be unavailable during this transfer period. Those with verified accounts will not face extra costs, but unverified users will have to pay a monthly fee of 0.16% of their holdings or 1 USDC – whichever is higher.
ByBit has been under increasing scrutiny from the French Autorité des Marchés Financiers since 2022, and French users have been restricted to ‘Close-Only’ mode since August of this year. The restrictions applied to all products offered by ByBit.
France continues to tighten crypto regulations for exchanges and French users
According to the FSB (Financial Stability Board), trading and investment were the main use cases of crypto assets in France. Stablecoins were mostly used as a medium of exchange for crypto-to-crypto transactions. However, the use of crypto assets for payments remained limited, just like the direct links between traditional finance and the crypto market.
ByBit’s exit from France emphasized the tightening regulatory environment in the country and Europe in general. Exchanges face increasing scrutiny and pressure to align with the evolving compliance frameworks in the French market. ByBit’s decision signaled the importance of users staying informed about regulatory changes and acting swiftly to secure their digital assets. The ByBit exchange is expected to focus on European markets where compliance pathways are clearer as regulators refine their crypto oversight.
French authorities have made significant progress in supervising, monitoring, and regulating crypto assets. They have also managed to successfully bring a huge part of the digital assets market into the regulatory perimeter.
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