As unauthorized exchanges wind down EU operations, an estimated 10 million users navigate an uncertain transition

As Europe's Markets in Crypto-Assets Regulation reaches its final transition deadline on July 1, 2026, Bybit EU GmbH is among a group of exchanges that secured full regulatory authorization ahead of the enforcement date, holding its license from Austria's Financial Market Authority (FMA) for nearly a year before the transition concluded.

The July 1 deadline marks the end of transition periods across the EEA, after which unauthorized Crypto-Asset Service Providers must complete wind-down processes under guidance from the European Securities and Markets Authority (ESMA). Several major exchanges were unable to secure MiCAR authorization on time and have restricted or exited EU markets, leaving an estimated 10 million users in an uncertain position.

What MiCAR requires

MiCAR establishes a unified framework for crypto-asset service providers operating across the European Economic Area. To obtain authorization, exchanges must meet capital adequacy requirements, demonstrate independent custody standards and comply with consumer protection obligations verified by a recognized national regulator. Bybit EU's authorization covers custody, exchange, transfer and placement of crypto assets on behalf of clients.

The risk of inaction

Consumer protection groups have flagged user inertia as one of the most consistent risk factors during platform transition events. When unauthorized platforms wind down, the timeline for orderly withdrawal is often compressed. Users on unlicensed platforms have limited regulatory recourse if operations are disrupted.

Bybit's position

Bybit EU has continued operating without interruption throughout the transition period.

"Users increasingly value clarity, continuity, and platforms designed with long-term regulatory readiness in mind," said Mazurka Zeng, CEO of Bybit EU. "Bybit EU was established to support that future."

The company noted that the July 1 transition deadline represents a meaningful inflection point for the global crypto market — one that underscores the growing importance of regulatory transparency as a factor users consider when evaluating platforms.

This article is for informational purposes only. Readers are encouraged to conduct their own research before making any decisions regarding crypto-asset platforms or investments. Investing in crypto-assets is associated with risks.