Bybit to Discontinue Withdrawal and Custody Services for French Users by January 2025
Bybit, a prominent cryptocurrency exchange, announced it will stop providing withdrawals and custody services for French users starting January 8, 2025. Users are advised to withdraw their funds due to the stringent regulatory environment in France. Bybit attributed its decision to the lack of authorization from the Autorité des Marchés Financiers (AMF), which flagged the exchange as unregistered in May 2024.
French Authorities Flag Bybit as Unregistered Exchange
The AMF warned that "BYBIT is not authorized to provide its digital asset services in France" and indicated that the exchange had been blacklisted since 2022 for failing to comply with local regulations. Under current laws, crypto exchanges must register as digital asset service providers (DASP) to legally operate in France.
The AMF stated, "Unregistered platforms providing these services in France are illegal under French law." The authority reserves the right to take legal action against unregistered platforms.
As a result, Bybit is winding down operations in France, allowing users until January 8, 2025, to close their accounts. Assets valued at around 10 USDC will be liquidated as transaction fees post-deadline. Users with assets exceeding 10 USDC can withdraw their funds through Coinhouse, a regulated trading platform in France.
Bybit is Still Operational in the EU Market
Despite exiting the French market, Bybit continues to operate in other European jurisdictions. In March, Bybit launched a regional platform in the Netherlands, enabling users to buy and sell cryptocurrencies like Bitcoin and Ethereum while adhering to local regulations.
In October, Bybit announced plans to obtain an operational license in Austria to expand its services in the country’s crypto market. If approved, this will allow the exchange to operate legally in Austria.
Bybit holds licenses in Cyprus, Georgia, and the United Arab Emirates (UAE), particularly Dubai. Last year, it secured a full regulatory license from Cyprus's financial watchdog for trading and custody services. In Georgia, Bybit received approval from the central bank to offer its products and services legally.