Bybit will terminate its withdrawal and custody services in France by January 8, 2025, advising users to withdraw their assets before the deadline.
The exchange cited France’s stringent regulations, particularly the requirement to register as a Digital Asset Service Provider (DASP), as the reason for discontinuing its services.
Bybit has faced challenges from the Autorité des Marchés Financiers (AMF) since being blacklisted in 2022 for operating without proper authorization.
ar. The company has requested users remove their funds from the platform before January 8, 2025, as it plans to ramp up its services in the region. Bybit the stringent regulatory environment in France for its decision to discontinue servicing French residents and citizens. The company had earlier implemented a restriction on its platform after it was called out by the country’s Autorité des Marchés Financiers (AMF) in May 2024.
French Authorities Flags Bybit as Unregistered Exchange
At that time, the French financial authorities warned users that “BYBIT is not authorized to provide its digital asset services in France” and added that the company had been operating without the appropriate authorization from the market watchdog.
The authorities that Bybit had been blacklisted since 2022 due to its inability to adhere to the current French regulations. Under the new law, crypto exchanges must register as digital asset service providers (DASP) in France to freely provide custody and trading services in the region.
“Unregistered platforms providing these services in France are illegal under French law. BYBIT is not registered as a DASP. The AMF reserves the right, under the terms of the Monetary and Financial Code, to take legal action to block the website of this platform, which is providing its services illegally in France,” reads the announcement.
In light of these developments, Bybit is winding down its operations in the country. The company has given users until January 8, 2025, to close their accounts. After the deadline, Bybit will liquidate all users’ assets valued at around 10 USDC. The funds will be accounted for as transaction fees by the company.
However, for those with assets above 10 USDC, the exchange has partnered with Coinhouse, a regulated crypto trading platform in France, to ensure the safe return of the funds. This group of users will be able to withdraw their cryptocurrencies from the platform directly instead of Bybit.
Bybit is Still Operational in the EU Market
Despite the planned departure from the French market, Bybit is still operational in other jurisdictions within Europe. Earlier this year, Bybit announced that it had opened a regional platform in the Netherlands in March. Through this platform, users can buy and sell cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) in compliance with local regulations.
In October, the exchange also that it is pursuing an operational license in Austria to explore the country’s crypto market. If approved, Bybit will be able to legally offer its services to users in the region.
