This announcement comes as a response to increased regulatory pressure by French financial authorities. Many jurisdictions look to get a tighter grip on crypto.
Bybit advises affected users to withdraw their funds before the deadline to avoid complications with account access of transfers. All the unclaimed assets that exceed USDC 10 will be transferred to Coinhouse, a French cryptocurrency custodian. To regain access the funds, users will need to complete a verification process with Coinhouse.
For accounts with balances under USDC 10, Bybit will impose a termination fee of USDC 10, deducting from available assets.
Transfers between Bybit and Coinhouse will commence between January 8th and January 16th, temporarily halting withdrawals during the process. Coinhouse users will be able to see their assets in their account, if their details match their Bybit identity.
Users from France without an account will be expected to register using a KYC verification process to access their funds.
Bybit clarified that there will be no fees regarding the conversion of assets to USDC or the transfer of funds to Coinhouse.
However, unverified Coinhouse accounts will incur a custody fee of 0.16% of asset value or 1 USDC monthly – whichever is higher – until successful KYC verification. This fee will be applied on the first day of each month, with the first fee being charged on the day the assets are transferred. Users with a verified Coinhouse account matching their Bybit identity will not incur this fee on the day of the asset transfer.
France’s crypto regulations
The country has intensified its regulatory framework for crypto services providers and improved consumer protection and financial stability.
In December 2022, the French Senate’s finance commission proposed expediting mandatory licencing for crypto firms to eliminate the option to operate crypto financial services without full authorisation until 2026.
This initiative comes as a response to global market disruptions and aims to end the option of operating without a licence.
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