Bybit is winding down services in the EEA: global exchange prepares for MiCA
On June 29, the cryptocurrency exchange Bybit announced a phased restriction of its global platform's functionality for residents of the European Economic Area (EEA). This is a direct response to tightening regulations in the region, where the MiCA regulation comes into full effect on July 1.
The company promised to notify users in advance of the exact deadlines so they can close or adjust their positions. Importantly, access to assets in accounts will remain, but trading activity will be significantly limited.
The restrictions apply to 29 EEA countries, including Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. Malta is not included in this list, as the local legal entity Bybit EU does not have a valid license and does not provide services to residents.
For clients wishing to continue working with the group, a separate route is available: the regulated European platform Bybit EU, operating through a legal entity with MiCA authorization. Access to its products will require opening a new account.
Binance also on the brink: large-scale exit from the EU inevitable
Alongside Bybit, reports are circulating in the market about possible restrictions from Binance. According to user data, from July 1, the exchange may stop onboarding new clients from the EU, partially scale back services, leaving only position management and asset withdrawal. Recommendations also include transferring funds to non-custodial wallets or licensed providers.
Earlier, Binance withdrew its application for a MiCA license in Greece, intending to obtain authorization in another, as yet undisclosed EU country. This only confirms the strategy: major players are restructuring their European infrastructure to comply with the new rules.
What lies behind these decisions?
July 1, 2024, is the deadline for completing the MiCA transition period in 27 EU countries. Crypto platforms without a license must stop servicing clients from the region, otherwise their activities will be deemed illegal. Thus, Bybit and Binance are just the first signs. Other global exchanges without European licenses will follow suit.
My professional analysis: Bybit's exit and potential Binance restrictions are not just technical adjustments but a tectonic shift in regulation. MiCA forces platforms to choose: either obtain a license and operate under strict oversight, or leave one of the largest markets. For traders, this means the era of "gray" exchanges in Europe is ending. Now the key question is whether the remaining players will adapt in time before regulators begin imposing sanctions.