Bybit Restricts EEA Trading Ahead of MiCA Deadline as OKX Targets European Users

Bybit will gradually restrict crypto trading services on its Global platform for users across the European Economic Area (EEA), becoming the second major cryptocurrency exchange after Binance to scale back operations before the European Union’s July 1 Markets in Crypto-Assets (MiCA) deadline.

The exchange confirmed that affected users will receive advance notifications explaining the phased changes while retaining full access to their assets, including custody and withdrawal services. At the same time, Bybit’s licensed European subsidiary, Bybit EU, will continue operating normally, while rival exchange OKX is actively seeking to attract customers impacted by the transition.

The MiCA transitional period officially ends on July 1, 2026, requiring crypto companies serving EEA residents to hold a Crypto-Asset Service Provider (CASP) license. The European Securities and Markets Authority (ESMA) has repeatedly stated that no extension will be granted and has warned unlicensed firms to comply with the new regulatory framework.

In its official announcement, Bybit identified 29 EEA member states where access to its Global platform will be restricted in stages. Users will receive clear timelines to close or manage open positions before the limitations take effect while maintaining access to their crypto holdings.

The company said the changes are part of its broader efforts to align with European regulatory requirements. Meanwhile, Bybit EU, headquartered in Vienna, will remain available to eligible customers. The platform is among only 14 fully licensed crypto exchanges listed on ESMA’s register, although its passporting rights currently do not extend to Malta.

Bybit’s move follows Binance’s decision to withdraw its MiCA license application in Greece after reports suggested regulators were unlikely to approve the exchange because of ongoing scrutiny surrounding co-founder Changpeng Zhao (CZ).

Binance previously pleaded guilty in the United States in 2023, agreeing to pay more than $4.3 billion in penalties. Zhao also admitted to violating anti-money laundering laws and stepped down as the company’s chief executive.

As a result, Binance plans to discontinue services for EEA users beginning July 1 while reportedly preparing to submit a new MiCA application in France.

OKX has responded quickly to the changing competitive landscape. The exchange secured one of the first MiCA licenses after receiving approval in Malta in January 2025 and also holds a Markets in Financial Instruments Directive (MiFID) authorization that allows it to offer derivatives products in Europe.

The derivatives market remains highly significant, with Binance, Bybit, and OKX ranking among the world's largest derivatives exchanges by trading volume in 2026. However, Bybit EU currently provides only spot trading, creating an opportunity for competitors with broader product offerings.

OKX Europe CEO Erald openly encouraged users leaving Binance and Bybit Global to migrate to the platform, promoting an 8% return on new deposits as an incentive.

“Now we offer 8% on new deposits. Don’t wait to transfer your assets from Bybit Global and Binance to OKX,” Erald said.

The rivalry between the major exchanges also intensified after OKX CEO Star Xu questioned whether Binance’s regulatory setbacks represented a genuine loss for the European crypto market, continuing the public competition between the two companies.

However, OKX has also faced its own regulatory challenges. The exchange pleaded guilty in the United States in 2025 over allegations involving more than $5 billion in suspicious transactions, resulting in a $504 million settlement. Additionally, Malta later fined OKX’s European entity €1.1 million despite its MiCA approval.

The implementation of MiCA is increasingly separating fully compliant crypto exchanges from those still navigating licensing requirements. Other regulated firms, including Coinbase, have also strengthened their European presence by establishing operations in Luxembourg to serve customers under the new framework.

Industry leaders believe regulatory approval alone is not enough to guarantee success. Marcos Viriato, CEO and co-founder of Parfin, noted that while a MiCA license provides legal certainty, long-term growth depends on delivering value to users.

“A license doesn’t create adoption. It creates the conditions for adoption. Compliance has become a competitive advantage,” Viriato told BeInCrypto.

As MiCA takes full effect, Europe’s cryptocurrency market is expected to consolidate around licensed platforms, with the coming months likely determining whether stricter regulation ultimately benefits traders through greater security, transparency, and market stability.