Bybit, the crypto exchange platform, announces the cessation of its withdrawal and custody services for French users from January 8, 2025. The decision comes as regulatory pressures intensify in the country.
Bybit withdraws from the French market in the face of strict regulation
Bybit, an international crypto trading platform, has confirmed that it will end its withdrawal and custody services for French users starting January 8, 2025 at 8:00 UTC. This decision is part of a context of strengthening regulatory requirements imposed by the Financial Markets Authority (AMF).
French users must act before the deadline. Bybit has clearly press release the need to withdraw all of their crypto assets before this deadline.
For those who will not proceed with the withdrawal, a transfer mechanism to Coinhouse, an approved French crypto custodian, has been put in place.
The transfer terms are precise: assets above 10 USDC will be automatically transferred to Coinhouse. Users will be required to complete KYC (Know Your Customer) verification to recover their assets. Accounts with a balance below 10 USDC will be charged an equivalent termination fee.
This announcement highlights the difficulties encountered by international crypto platforms in the face of evolving regulation in Europe. Bybit, although popular for its diversified trading offering, seems to have chosen to prioritize compliance in other jurisdictions rather than adapting to the new French constraints.
Crypto regulations in France are intensifying
Bybit's decision is part of a broader movement to regulate the crypto market in France. Indeed, since December 2022, the French Senate has launched an initiative aimed at accelerating the granting of compulsory licenses for crypto companies.
This new regulation aims to eliminate any possibility of operating without full authorization from the AMF until 2026. For platforms like Bybit, this means adapting quickly or leaving the French market. Bybit's choice is clear: strategic withdrawal rather than costly compliance.
These operational constraints are pushing certain platforms to withdraw from the French market due to lack of adaptation. This dynamic is not unique to Bybit. Other major players like Binance and Crypto.com have already had to review their strategies in Europe, facing similar pressures.
Meanwhile, in the United States, the election of Donald Trump has revived hopes for a more favorable regulatory framework for crypto businesses, creating a business-friendly environment. The French government should reconsider its current regulatory strategy and create a more attractive framework for crypto businesses. Otherwise, there is a risk of seeing innovative companies, even those most attached to the French market, migrate to more welcoming jurisdictions.
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