Crypto: Bybit Stops Its Services In France From January 2025

Bybit, the crypto exchange platform, announces the cessation of its withdrawal and custody services for French users starting January 8, 2025. This decision comes as regulatory pressures mount in the country.

Bybit withdraws from the French market in the face of strict regulations

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 AM UTC. This decision is part of a context of tightening regulatory requirements imposed by the French Financial Markets Authority (AMF).

French users must take action before the deadline. Bybit has clearly communicated the necessity to withdraw all their crypto assets before this deadline.

For those who do not proceed with the withdrawal, a transfer mechanism to Coinhouse, a licensed French crypto custodian, has been established.

The transfer terms are clear: assets exceeding 10 USDC will be automatically transferred to Coinhouse. Users must complete a KYC (Know Your Customer) verification to reclaim their holdings. Accounts with a balance lower than 10 USDC will incur equivalent cancellation fees.

This announcement highlights the difficulties faced by international crypto platforms in the face of evolving regulation in Europe. Bybit, popular for its diverse trading offerings, seems to have chosen to prioritize compliance in other jurisdictions rather than adapt to new French constraints.

The crypto regulation in France is intensifying

The decision by Bybit is part of a broader movement towards regulation of the crypto market in France. Indeed, since December 2022, the French Senate has launched an initiative to expedite the granting of mandatory 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: a strategic withdrawal rather than costly compliance.

These operational constraints are pushing some platforms to withdraw from the French market, unable to adapt. This dynamic is not unique to Bybit. Other major players like Binance and Crypto.com have already had to revise their strategies in Europe in response to similar pressures.

Meanwhile, in the United States, the election of Donald Trump has revived hopes for a more favorable regulatory framework for crypto companies, creating a more business-friendly environment. The French government should reconsider its current regulatory strategy and create a more attractive framework for crypto companies. Otherwise, there is a risk of seeing innovative companies, even those most attached to the French market, migrate to more welcoming jurisdictions.