Bybit Becomes The Latest Crypto Exchange To Pull Back From Europe Ahead Of MiCA’s July 1 Deadline

With just days remaining before the European Union’s (EU) Markets in Crypto-Assets Regulation (MiCA) takes full effect across the bloc on July 1, Bybit has become the latest digital asset exchange to scale back its presence in Europe. 

The exchange, one of the world’s largest in terms of trading volume, told users on Monday that access to certain services on its global platform will be progressively limited for residents of the key jurisdictions.

Bybit Has A Backup Plan 

In its announcement, Bybit described the move as part of an ongoing effort to align with regulatory requirements under the new regulatory regime. The exchange said affected users would receive clear communications outlining timelines for managing both existing and new positions before any restrictions take effect.

The exchange specified that the affected European Economic Area (EEA) countries include Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece and 17 others. 

But rather than exiting Europe outright, Bybit is steering its EEA users toward a separate, already-regulated entity. The company operates Bybit EU, an entity authorized under MiCA that functions as its compliant European platform, and users affected by the restrictions are effectively being funneled toward that regulated alternative. 

Bybit also said it is pursuing additional licensing in Austria, a move aimed at expanding the range of products it can legally offer across the bloc once that authorization is secured.

Europe’s MiCA Deadline Is Already Claiming Casualties 

Bybit’s announcement follows a similar move from Binance just days earlier. As CryptoDepth reported last week, Binance confirmed it had withdrawn its MiCA license application in Greece and told CNBC on Friday that some European users would see their services affected as a result. 

Among other major platforms facing similar pressure, MEXC remains unauthorized and has already drawn a public warning from Dutch regulators, KuCoin was rejected outright in Austria, and Tether’s USDT has been delisted from major regulated exchanges after declining to pursue a license at all. 

Erald Ghoos, OKX’s European chief, has predicted that up to 80% of crypto exchanges operating in the region may not survive the transition.

Featured image generated with OpenArt.