Bybit To End Services For French Users In January 2025

(MENAFN- The Arabian Post) Bybit, a prominent Cryptocurrency exchange, has announced it will cease offering withdrawal and custody services to users in France beginning January 8, 2025. This decision follows shifting regulatory frameworks in the country, pushing Bybit to re-evaluate its operations within France. The exchange has instructed users to withdraw their assets before this deadline, as it will no longer support transactions for French accounts once the cut-off date passes. The move comes as part of broader changes within the European Union, where regulators have heightened scrutiny of cryptocurrency platforms. France, in particular, has taken a strong stance on ensuring that cryptocurrency exchanges operate in compliance with strict financial regulations, especially concerning anti-money laundering (AML) and customer protection laws. Bybit's decision underscores the increasing pressure on non-EU entities to adhere to local laws governing digital asset markets. French users of Bybit will be required to withdraw all assets from their accounts by the specified date. For accounts holding a balance of 10 USDC or less, a fee of 10 USDC will be applied to cover the administrative costs of transferring these small amounts. Accounts with higher balances will be seamlessly transferred to Coinhouse, a regulated cryptocurrency platform operating within France. Coinhouse will act as the custodian for Bybit's former French clients, allowing them to continue trading and managing their assets within a legally compliant ecosystem. This announcement reflects Bybit's response to the evolving regulatory environment in Europe, where several nations are enhancing regulations to address risks associated with cryptocurrency trading. While Bybit has complied with local regulations in many jurisdictions globally, this move highlights how stricter national regulations can affect the operations of international exchanges. Coinhouse, which is well-regarded within the French cryptocurrency market, is licensed by France's Financial Markets Authority (AMF). It provides a more secure and legally compliant platform for users, ensuring that they can continue to access their assets in a fully regulated environment. Bybit's choice to transfer its users' assets to Coinhouse reflects a practical approach to ensuring that customers are not left without support during the transition. This shift follows a broader trend among cryptocurrency exchanges that are adjusting their operations to meet regional regulatory requirements. Over the past year, many exchanges have had to reassess their activities in response to regulatory pressures from governments and financial authorities worldwide. This trend has led to some exchanges scaling back their services or withdrawing entirely from certain markets. France's tightening regulations have been a significant factor in prompting Bybit to halt its services. The French government has been proactive in regulating the cryptocurrency sector, aiming to safeguard consumers and prevent illegal activities such as money laundering. With the implementation of the European Union's Markets in Crypto-Assets (MiCA) regulation, which aims to create a unified regulatory framework for digital assets across the EU, exchanges like Bybit are finding it increasingly difficult to navigate the local requirements without substantial adjustments to their operations. Bybit's cessation of services for French users is not an isolated incident. Other major exchanges have made similar decisions in recent years, particularly as regulatory scrutiny on the cryptocurrency industry intensifies. As cryptocurrency trading becomes more mainstream, the need for a clear regulatory framework becomes more urgent. The increasing pressure from regulators highlights the balancing act exchanges must perform between complying with local laws and maintaining their global operations. For Bybit, this decision marks a shift in its operations in France and could set a precedent for how the exchange navigates other regulatory environments in the future. The company has not made any comments about whether similar actions will be taken in other European countries. However, it is clear that the regulatory landscape in France is playing a significant role in shaping the future of the exchange's presence in the region.">

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