That message is just saying you have to use a bitcoin address for your withdrawal.
It's been nearly 8 years since segwit addresses were introduced. If you enter a segwit address and you don't get any error, that means that they support segwit addresses.


I have never used the exchange in question and I can't say whether it's safe or not, but I would surely avoid it, if they really charge $80 for a bitcoin withdrawal.