The second largest crypto exchange by trading volume, Bybit, announced that it will be implementing some temporary changes to its operations in the European Economic Area (EEA) to try and comply with changing regulatory frameworks. Bybit’s main motivation for this move is to comply with the Markets in Crypto-Assets Regulation (MiCA).
Focus on MiCA Licensing in Austria
Bybit is actively pursuing a MiCA license in Austria, which is a key step in its compliance-first approach. The license will allow Bybit to operate under the strict European regulatory requirements.
Ben Zhou, co-founder and CEO of Bybit, believes that obtaining the MiCA license will be a major strategic milestone for Bybit, and will also allow the exchange to exceed the expectations of both regulators and its users before compliance becomes a problem.
Temporary Adjustments to EEA Operations
To ensure full compliance with the MiCA regulations, particularly the reverse solicitation principle, Bybit temporarily stopped all general communications with EEA users. While this adjustment limits certain activities, existing customers still have uninterrupted access to their crypto assets. The company also assured its users that this measure is only temporary and to avoid any regulatory breaches. Bybit stated that it will re-engage with the EEA market once it secures the MiCA license.
Additionally, the company is actively collaborating with regulatory authorities to make the licensing process as quick and painless as possible. For now, Bybit plans on becoming one of the first fully compliant platforms serving the EEA crypto community.
Other European Exchanges Adjust to MiCA Rules
Bybit is not the only exchange making big changes to comply with MiCA. Coinbase Europe, Coinbase Germany, and Coinbase Custody International announced plans to delist several stablecoins, including Tether’s USDT, PAX, PYUSD, GUSD, GYEN, and DAI, starting Dec. 13 to ensure compliance with MiCA’s regulations and requirements.
Despite these changes, Coinbase will still support USD Coin (USDC) and the euro-pegged EURC, which already meet MiCA’s regulatory standards. The European Union’s very strict stablecoin regulations were introduced in June of 2024. The full enforcement of the framework for crypto asset service providers (CASPs) is slated for Dec. 30.
This article was originally Posted on Coinpaper.com
