Bybit has become one of the first cryptocurrency exchanges to comply with the European Union’s Markets in Crypto-Assets regulation.
Bybit has secured the license to operate in the European Union under the new MiCA regulation. On Thursday, May 29, the Financial Market Authority of Austria’s website listed Bybit as a crypto-asset service provider.
The license positions Bybit as MiCA-compliant and allows it to offer crypto-related services throughout the European Union. It is also part of the company’s broader strategy to align with regulatory standards globally.
MiCA regulation mandates that all “crypto-asset service providers” register with a relevant financial authority in one of the member states. This includes exchanges and wallets, which now have to follow certain standards on security and risk management.
Service providers also have to implement anti-money laundering practices, as well as collect data on user transactions. New rules also apply for crypto taxation and stablecoins, which have to maintain reserves and comply with strict disclosures.
Bybit makes compliance push
The news comes after the French financial regulator AMF removed Bybit from its blacklist in February. At the time, Bybit’s CEO Ben Zhou confirmed that the company is working to secure its MiCA license to comply with the EU’s rules.
This move is a part of Bybit’s effort to comply with regulations across multiple jurisdictions. In February, the company registered with India’s financial authority after settling a $1 million fine that was imposed on the exchange due to non-compliance.
Still, these efforts were overshadowed by the $1.4 billion hack the exchange suffered, the largest of its kind in history, attributed to North Korean hackers. While the users did not suffer losses directly, the company failed to recover most of the funds. By May 27, reports suggested that nearly half of the stolen funds are now untraceable.
