Key Points:
- Bybit is seeking regulatory approval to operate in Austria in anticipation of the upcoming MiCA regulations.
- The exchange aims to expand into Austria but is not yet licensed to offer its services in the country.
- Austria is home to major crypto infrastructure provider Bitpanda, which recently expanded its partnerships with Deutsche Bank and Solaris.
- Bybit has already secured licenses in Kazakhstan and Türkiye and launched a Shariah-compliant Islamic Account.
Bybit Seeks Regulatory Entry in Austria
Bybit, one of the world’s largest cryptocurrency exchanges, has announced plans to seek regulatory approval in Austria as part of its ongoing global expansion strategy. This move comes ahead of the European Union’s Markets in Crypto-Assets (MiCA) regulation, expected to come into effect later in 2024. The company is preparing to comply with Austrian financial laws to operate legally in the country, though it is not yet licensed and does not currently offer services to Austrian users.
The company emphasized that it is diligently working with local authorities to ensure full regulatory compliance, pending approval from Austrian regulators. Bybit’s potential entry into the Austrian market is in line with its broader goals to establish a firm presence in key regions before MiCA regulations take hold across Europe.
Austria’s Crypto Landscape: Bitpanda Leads the Way
Austria already has a thriving crypto ecosystem, home to Bitpanda, one of Europe’s most prominent digital asset platforms. Established in 2014, Bitpanda has grown to serve over 4 million users, offering a vast array of digital assets, including cryptocurrencies, stocks, ETFs, and commodities. The company has built a strong reputation in Europe, offering more than 350 crypto assets and over 2,800 financial instruments.
Bitpanda recently strengthened its partnership with Deutsche Bank to enhance its payment infrastructure, utilizing the bank’s real-time solutions for smoother financial transactions. Additionally, the collaboration with Solaris, a prominent embedded finance provider, has enabled Bitpanda to streamline customer identification in compliance with European regulations, further solidifying its market leadership.
Bitpanda’s robust presence in Austria and its partnerships with key players in the finance sector are significant milestones in Austria’s role in the European crypto space. As Bybit looks to enter this market, it will likely face competition from established local players like Bitpanda.
Bybit’s Global Expansion and Regulatory Milestones
In addition to its ambitions in Austria, Bybit has already secured key regulatory licenses in other regions. Recently, it obtained a full license from Kazakhstan’s Astana Financial Service Authority (AFSA), allowing it to operate a comprehensive digital asset trading facility in the country. This new licensing enables Bybit to offer spot trading, derivatives, and crypto loans, catering to the needs of traders in Kazakhstan and the broader CIS region. The Bybit Kazakhstan platform is expected to launch in mid-October 2024, expanding the company’s presence in Central Asia.
Similarly, Bybit has made significant strides in Türkiye, where it was officially recognized as a Crypto Asset Service Provider by the Capital Markets Board (CMB). Through its local subsidiary, Narkasa Yazılım Ticaret Anonim Şirketi, Bybit has launched Turkish Lira (TRY) trading pairs, making it easier for Turkish users to trade cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) directly in their national currency.
New Offerings: Islamic Account Launched
In a pioneering move, Bybit recently introduced an Islamic Account, positioning itself as the first major cryptocurrency exchange to offer Shariah-compliant trading services. This initiative is aimed at Muslim traders and aligns with Islamic financial principles, opening up new opportunities in the fast-growing Islamic economy, which currently serves nearly 1.9 billion people worldwide.
The Islamic Account offers a range of Shariah-compliant products, including spot trading for 75 approved tokens and automated trading bots. Bybit ensures double certification from both Crypto Halal Certification and ZICO Shariah Advisory Services, making sure all its products adhere strictly to Islamic law. This development is expected to attract a significant portion of the $2.3 trillion Islamic finance market, particularly in the Middle East, Africa, and South Asia.
Bybit’s expansion plans, including its bid to enter Austria, underscore the company’s ambition to secure a dominant position in both established and emerging crypto markets. While awaiting approval in Austria, the exchange continues to push forward in other regions, ensuring regulatory compliance and introducing new services tailored to a diverse global audience.
