In a significant announcement on Tuesday, December 17th, cryptocurrency exchange Bybit declared it will suspend all digital asset withdrawal and custodial services in France, citing regulatory hurdles.
The services will no longer be available after January 8, 2025, marking a firm deadline for French users to withdraw their assets. Bybit emphasized its commitment to adhering to evolving regulations while taking this step.
Bybit Exit from France
Bybit’s decision comes after earlier restrictions were imposed in August 2024, when the exchange halted its buying and selling services for digital assets in the country.
The new development further signals the growing complexity of navigating regulatory frameworks in certain jurisdictions, particularly in Europe.
The crypto exchange has urged all French nationals and residents to withdraw their assets before January 8, 2025, giving them less than a month to act.
Accounts holding 10 USDC or less will face a 10 USDC closure fee and will subsequently be shut down after the deadline.
For users with assets exceeding 10 USDC, Bybit has arranged for the remaining funds to be transferred to Coinhouse, a regulated French crypto-asset platform. Coinhouse will assist with facilitating withdrawals following Bybit’s exit from the country.
Bybit Expanding Global Influence
Bybit, which holds the position as the world’s second-largest cryptocurrency exchange by trading volume, has been expanding its presence globally while adjusting to local regulatory challenges.
Despite its exit from France, the exchange continues to focus on other growth regions, such as the Middle East and North Africa (MENA).
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Bybit participated in Bitcoin MENA, a prominent crypto event. Ahead of the conference, the exchange hosted its exclusive Horizon Night on December 8, seamlessly connecting the excitement of the Abu Dhabi Grand Prix with anticipation for the Bitcoin-focused discussions at Bitcoin MENA.
On December 10, Bybit Co-founder and CEO Ben Zhou participated in a panel discussion titled “Improving Access to Bitcoin in the UAE.” Zhou emphasized Bybit’s commitment to enhancing accessibility to Bitcoin in the UAE, underscoring the growing demand for digital assets in the region.
France and Digital Assets
The challenges Bybit faces in France mirror broader trends as regulators worldwide impose stricter compliance requirements for crypto platforms.
Notably, France’s National Gaming Authority (ANJ) is currently investigating Polymarket, a cryptocurrency-based prediction platform that has garnered attention due to its popularity surrounding the 2024 U.S. presidential election.
The ANJ is exploring whether Polymarket’s operations comply with French gambling laws and has signalled a potential ban.
Bybit’s exit from France highlights the growing pressures on crypto exchanges to comply with region-specific regulations while managing operational costs. The move also raises questions about the future of digital asset accessibility in countries adopting stricter policies.
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