Key Takeaways
- Transition plan involves transferring user funds to Coinhouse, a regulated French crypto-asset platform
- According to Bybit, accounts holding balances of 10 USDC or less will incur a termination fee of 10 USDC
Leading crypto exchange Bybit has announced that it will discontinue its withdrawal and custody services in France starting January 8, 2025.
The transition plan involves transferring user funds to Coinhouse, a regulated French crypto-asset platform, as part of Bybit’s efforts to comply with local regulations and restructure its operations in the region.
As per the official statement, accounts holding balances of 10 USDC or less will incur a termination fee of 10 USDC, after which the accounts will be permanently closed. For users with balances exceeding 10 USDC, funds will be automatically converted to USDC at the prevailing market rate and transferred to Coinhouse.
The process of transferring funds will result in a temporary halt on withdrawals between January 8 and January 16, 2025. Following this, users with verified Coinhouse accounts that match their Bybit account details are expected to see their balances credited shortly after January 16.
For users who do not already have a Coinhouse account, Bybit has advised them to register and complete the Know Your Customer (KYC) verification process.
Those who fail to complete this step will still have their funds transferred but will incur a monthly custody fee from Coinhouse, set at 0.16% of the asset value or 1 USDC, whichever is higher. Bybit stated that the custody fee will be charged on the day of the transfer and continue on the first day of each subsequent month until KYC verification is finalized.
Bybit has clarified that no fees will apply for the conversion of assets into USDC or the actual transfer to Coinhouse. Verified Coinhouse users will not incur any fees on the day their funds are transferred, and their balances are expected to reflect promptly in their Coinhouse accounts.
While Bybit has assured users of a smooth transition, the process places the onus on users and customers to complete their Coinhouse registration and verification promptly to avoid extra charges.
Last month, Japan’s Financial Services Agency (FSA) issued warnings to five crypto exchanges including Bybit for allegedly operating in Japan without proper registration.
