Bybit Shuts Down Crypto Services in France by 8 January

Bybit Bows Out of France Amid Intensifying Regulations

Crypto exchange Bybit has announced its decision to cease providing withdrawal and custody services to users in France, effective 8 January 2025, at 8:00 AM UTC.

This strategic move follows mounting regulatory scrutiny from the French Financial Markets Authority (AMF), reflecting the increasing challenges for crypto platforms operating in the region.

Deadline Looms: What French Users Must Know

Bybit has urged its French customers to withdraw their funds before the deadline to avoid disruptions.

For accounts holding more than 10 USDC, the company will automatically transfer the remaining funds to Coinhouse, a licensed cryptocurrency custodian in France.

Users will need to complete Know Your Customer (KYC) verification with Coinhouse to access their assets.

Accounts with balances below 10 USDC will face a termination fee of 10 USDC, which Bybit will deduct before closing these accounts.

After 8 January 2025, withdrawals will be temporarily suspended until the asset transfer process concludes on 16 January 2025.

Verified Coinhouse users can expect their funds to reflect shortly after this date, provided their account details match.

“A Strategic Decision,” Says Bybit

Bybit has cited regulatory pressures as the primary reason for this exit.

The exchange wrote in its statement:

“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 8 January 2025, Bybit will no longer provide withdrawal and custody services to nationals or residents of the French Territories.”

This withdrawal mirrors a broader trend among crypto platforms grappling with increasingly strict European Union regulations, including the Markets in Crypto-Assets (MiCA) framework.

France’s Hardline Stance on Crypto Compliance

France has consistently positioned itself as a stringent regulator in the crypto space.

The AMF has mandated that crypto platforms secure full operational licenses by 2026, effectively limiting unlicensed activities.

This rigorous approach has already prompted several crypto companies to either comply with costly regulations or retreat from the market altogether.

Bybit joins other major players like Binance and Crypto.com, which have had to reevaluate their strategies in France due to the demanding regulatory environment.

Polymarket, a crypto-based betting platform, was recently banned in France for non-compliance with gambling laws, further highlighting the nation’s commitment to oversight.

Global Regulatory Pressures Impacting Crypto Exchanges

Bybit’s challenges extend beyond France.

Earlier this year, Japan’s Financial Services Agency (FSA) issued a formal warning to Bybit and four other overseas exchanges for operating without proper registration.

The platform has also faced legal battles elsewhere; in October, Bybit settled a $225 million dispute with the now-bankrupt FTX exchange, with proceeds set to aid FTX creditors starting January 2025.

Meanwhile, Coinbase has withdrawn from Turkey, citing regulatory hurdles, while Binance and KuCoin have faced similar issues in the country.

These instances point to a growing trend of heightened global scrutiny on crypto exchanges.

Mixed Reactions to Europe’s Regulatory Approach

The European Union’s MiCA regulations have sparked polarised reactions within the crypto community.

Influencer Alessandro Palombo criticised the EU’s approach, stating,

“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.”

While some argue for stricter regulation to protect consumers, others warn that overly rigid frameworks could drive innovation to more lenient jurisdictions.

The contrasting approaches between Europe and the United States have already begun to shape the global crypto landscape.

Bybit’s exit from France serves as a stark reminder of the challenges faced by global crypto exchanges as they navigate an increasingly complex regulatory environment.