Bybit Secures MiCA License and Strengthens EU Presence

By: Eliza Bennet

Crypto exchange Bybit has achieved significant regulatory approval, securing a Markets in Crypto-Assets (MiCA) license from Austria's Financial Market Authority (FMA). This development positions Bybit to extend its digital asset services across the European Economic Area (EEA), covering all 30 member countries. With the MiCA license, Bybit plans to centralize its European operations through a new headquarters in Vienna, fueling further expansion in the region. The exchange has committed to hiring over 100 local professionals and investing in blockchain research and education under its Blockchain for Good Alliance, a collaboration designed to bolster blockchain innovation in partnership with universities.

Bybit joins the ranks of a select few crypto firms operating within the MiCA framework, including major players such as Kraken, OKX, and Crypto.com, as well as financial behemoths like BBVA and Clearstream. This move aligns Bybit with stringent European regulations focused on consumer protection, transparency, and anti-money laundering efforts. Bybit's CEO, Ben Zhou, expressed the company's global aspirations, emphasizing ongoing collaborations with regulators worldwide to ensure that users can access their platform within a robust compliance framework.

Despite this regulatory milestone, Bybit is dealing with the ramifications of a security breach in February that led to a staggering $1.4 billion loss. The exchange has initiated a dedicated portal to monitor the recovery efforts for the stolen assets. Currently, $644 million of the breached funds remain untraceable, having been obfuscated using sophisticated tools like Wasabi Wallet, Tornado Cash, Railgun, and CryptoMixer. As an encouraging turn, Bybit has successfully frozen $62.9 million in stolen assets. In recognition of the challenges faced, Bybit has awarded $2.3 million in bounties to 13 individuals and groups instrumental in aiding their investigation and recovery processes, including well-known blockchain sleuth ZachXBT.

Securing the MiCA license provides Bybit with a strengthened foothold in Europe and heralds a new chapter in its market strategy and regulatory compliance journey. This move comes as part of a broader strategy to bolster Bybit's reputation and solidify its commitment to innovation and user security within the rapidly evolving crypto market.