Cryptocurrency exchange Bybit announced that it will terminate its digital asset withdrawal and custody services in France. The company will cease offering these services to users starting January 8, 2025. Bybit cited existing regulatory barriers in France as the reason for this decision, and users have been given a deadline to withdraw their funds.
Users Asked to Withdraw Funds Early
Bybit has requested all users in France to withdraw their assets from their accounts by January 8, 2025. If this process is not completed, accounts with a balance of 10 USDC or less will be closed for a fee of 10 USDC. Users with higher balances will have their funds transferred to the Coinhouse platform, which is regulated in France, to facilitate the withdrawal process. Bybit has warned users not to miss the deadline and emphasized the importance of emptying accounts in a timely manner.
Last August, Bybit had halted its digital asset trading services in France. With the latest decision, user services will completely come to an end. This step stems from the need to reorganize operations in response to challenges posed by the regulatory environment.
Bybit Faces Regulatory Challenges in Europe
Bybit has a strong presence in Europe, ranking among the leading cryptocurrency exchanges in Germany and the Netherlands. The platform holds the second-largest trading volume worldwide, just after Binance, and operates in around 120 countries. However, increasing pressure from regulatory bodies is affecting Bybit’s operations.
Following France, Japan also accused Bybit of regulatory violations. Japan’s Financial Services Agency (FSA) claimed that Bybit does not comply with current cryptocurrency regulations. The company stated that necessary steps have been taken to comply with regulatory changes. However, facing similar issues in various regions worldwide indicates that regulation in the cryptocurrency market is becoming increasingly complex.
Experts suggest that Bybit’s exit from France will redirect users to other regulated platforms. Platforms like Coinhouse provide an alternative option due to regulatory compliance in France.
The strategies employed by cryptocurrency exchanges to cope with regulatory barriers will be crucial for the market’s trajectory. Actions taken by significant exchanges like Bybit will continue to shape the dynamics within the industry.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
