Bybit, the second-largest crypto exchange in terms of trading volume, has announced it is making some changes to its operation within the European Economic Area to comply with new regulatory frameworks. Bybit is primarily motivated by the Markets in Crypto-Assets Regulation.
The MiCA Licensing Process in Austria
Bybit actively pursues a MiCA licence in Austria. This is an important step towards its first-compliance approach. Bybit will be able to comply with the European regulations by operating under this license.
Ben Zhou believes that the MiCA will allow Bybit to surpass the expectations of regulators as well as its users, before the compliance issue becomes an issue.
Temporary adjustments to EEA Operations
Bybit has temporarily halted all communications with EEA residents to ensure compliance with MiCA regulations and the reverse solicitation principles. Existing customers can still access their crypto assets despite the fact that this change limits some activities. This measure was only temporary, and the company assured users of this. Bybit announced that the company will reengage the EEA once they secure the MiCA licence.
The company also works closely with regulators to ensure that the process of licensing is as simple and quick as possible. Bybit intends to become one of the first platforms that are fully compliant and serve the EEA Crypto community.
MiCA rules are adopted by other European exchanges
Bybit isn’t the only exchange that has made major changes in order to be compliant with MiCA. Coinbase Europe Coinbase Germany and Coinbase Custody International have announced that they will delist stablecoins including Tether’s USDT and PAX as well as GUSD, GYEN and DAI starting December 13 in order to comply with MiCA’s requirements and regulations.
Coinbase, despite these changes, will continue to support USD Coins (USDC), and EURC which is pegged in euro, as they already meet MiCA’s regulatory standards. In June 2024, the European Union introduced its very strict regulations on stablecoins. On Dec. 30, the full implementation of the framework for Crypto Asset Service Providers (CASPs), is scheduled.
