MiCAR sets one rulebook for all of Europe

Europe’s decision to embrace MiCAR (Markets in Crypto‑Assets Regulation) isn’t rosy, but that’s precisely why it might be the best move forward for the continent’s digital asset future.

Before MiCAR, the EU crypto landscape was a patchwork of AML directives and national interpretations—great for lawyers, terrible for innovation. There were few rules and even fewer regulators supervising the industry, so while some people made quick profits, others lost their savings to hacks, scams, or sheer confusion. 

Europe was slow to adopt cryptocurrency because the infrastructure felt too risky, chaotic, and unfamiliar to most users, and there were no rules to guide companies or protect people. 

MiCAR is the European Union’s first attempt to create a legal framework for crypto markets across all 29 countries in the European Economic Area.

It introduces licensing requirements, mandatory identity verification, anti-money laundering compliance (AML), capital reserves, transparency reports, and user protection measures. These are efforts to end the vague legal status for centralized exchanges in the EU.

Some say MiCAR will make crypto less dynamic, open, and appealing to the high-risk, high-reward crowd that defined the industry’s early years. However, platforms like Bybit feel crypto needs trust, stability, and legitimacy to succeed.

As one of the world’s largest exchanges, Bybit is now fully licensed under MiCAR through its Austrian subsidiary, Bybit EU GmbH. The company also launched Bybit.eu for European users on July 1, 2025.

But can Europe make crypto boring enough for it to finally go mainstream?

MiCAR sets one rulebook for all of Europe

MiCAR wants all crypto activity tied to real-world identities, with data stored securely and shared with regulators when needed. Users must verify their identity before using a platform. Additionally, every company must check that its customers are not involved in illegal activities in line with the Know Your Customer (KYC) and AML rules.

In addition, companies should be fully licensed in one EU country and disclose their capital reserves, internal controls, and operations to prove that they have enough financial resources to protect users in case of trouble.

Companies with a license can use passporting rights to legally offer their services to all 29 countries in the EEA without applying for a different license in every country.

Finally, companies must now clearly report their operations, follow the EU’s strict General Data Protection Regulation (GDPR) laws, and show regulators how they protect users’ personal information. These rules give governments better tools to monitor the market and react to any risks before they spread, creating a cleaner, safer environment for users.

Bybit builds a new platform to follow the rules

Bybit officially launched Bybit.eu to meet the most demanding requirements under MiCAR and offer European users competitive pricing and smooth trade execution in volatile markets. 

The company is also investing in blockchain education, public-private collaboration, and grassroots innovation through its Blockchain for Good Alliance (BGA) and partnerships with local academic institutions. Bybit’s leadership says it wants to support developers, build local talent pipelines, and create economic opportunities beyond trading platforms and token prices.

Bybit.eu represents the kind of “boring” crypto regulators hoped MiCAR would create, and it may feel like a breath of fresh air for users who have grown tired of market chaos, regulatory uncertainty, and bad actors with flashy promises.

MiCAR gives users more safety but faces backlash

MiCAR’s supporters say the clear, enforceable protections allow users to finally see how a platform works, how it holds and moves funds, and who is responsible if something goes wrong due to the clear, enforceable protections. Users often lost everything while founders or creditors walked away untouched, but MiCAR now requires failed regulated crypto firms to prioritize repaying their customers first.

Regulators must perform regular audits, share operational data with regulators, and prove that they act in users’ best interests. This will help to reduce the risk of scams, insider trading, and shady schemes disguised as innovation. 

MiCAR aims to create a safer and more predictable environment where users can participate in crypto without worrying about losing their savings to technical loopholes, rug pulls, or misleading terms.

However, critics argue that MiCAR provides stringent compliance rules that might stifle experimentation, reduce competition, and make it more challenging for new ideas from smaller teams without deep pockets. They argue that MiCAR will create a market that only big corporations can play in because only they can afford full-time compliance officers, lawyers, and auditors, whilst the next wave of creators and innovators will need to build outside of Europe or not build at all.

Privacy advocates and libertarian-leaning users also consider this development a regressive step, as MiCAR ends the option for anonymous trading on licensed exchanges, as each user must undergo identity verification under the Know Your Customer protocols.

Some people are worried that new rules will snuff out the culture of experimentalism that allowed crypto to emerge in the first place. They argue that imposing one prescriptive regulatory model on all innovation risks stifling progress and outsourcing creativity to the edges of the market.

If Europe becomes a place where innovation is not welcome, the most ambitious crypto projects will simply move elsewhere. The continent will abdicate its place as a global leader in the digital economy.