Bybit Separates Crypto and Payments Into Two Licensed Entities in Austria
Bybit will manage crypto and payment services under separate licenses through a unified platform in Europe.
1Bybit's Dual Licensing Structure in Austria
Bybit established two separate entities in Austria: MiCA-licensed Bybit EU GmbH for crypto services and EMI-licensed Bybit Payments GmbH for electronic money services. Each license falls under distinct EU regulatory frameworks - MiCA for crypto asset custody/trading and EMI for payment services. Customers will access both services through a single Bybit.eu account, maintaining operational simplicity despite legal separation.
2Regulatory Requirements Forced Separation
EU legislation doesn't permit combining crypto and payment services under a single license. Integrating payment services into Bybit's crypto business would require complying with both licenses' capital and client fund protection requirements separately. The company opted for legal separation over operational complexity. Each entity will operate within its specific regulatory perimeter while presenting a unified front to users.
3Industry Peers Follow Similar Models
Kraken obtained an EMI license in Ireland in 2023 before adding MiCA authorization in 2024. Crypto.com held a Maltese EMI license since 2021, gained MiCA approval in 2025, and applied for an additional Limited Financial Institutions license in 2026 for stablecoins. All major exchanges are developing similar strategies to navigate the EU's lack of a unified crypto-payments license.
4EMI License Scope and Future Plans
Bybit's new EMI license covers P2P payments, Strong Customer Authentication (SCA), open banking features, merchant payment tools, and card products - none of which are currently live. Bernhard Krick, MD of Bybit Payments GmbH, emphasized maintaining clear operational boundaries between entities while ensuring seamless customer access through the Bybit.eu platform. The company hasn't disclosed specific rollout timelines.
5Reducing Third-Party Dependencies
Georg Harer, MD of both entities, positioned the EMI license as key to reducing reliance on third-party payment processors and building direct banking relationships. The license grants Bybit control over its European payment infrastructure. This strategic move aligns with broader industry trends of crypto platforms seeking financial independence, though concrete implementation dates remain unspecified.
6EU's Fragmented Regulatory Approach
Current EU legislation treats crypto and traditional financial services under separate frameworks - MiCA for crypto assets and PSD2 for payments. This forces dual-service providers into complex multi-license compliance scenarios. Bybit's structure represents a standard operational response to this regulatory challenge, balancing legal requirements with user experience through technical integration of separate legal entities.
7Strategic Positioning in European Markets
The Austrian licenses strengthen Bybit's EU presence, with MiCA covering 30 EEA countries and the EMI license valid across 27 EU states. This dual-license strategy enables deep market penetration for both crypto and traditional financial services. Bybit aims to deliver more integrated user experiences than competitors, though full service integration depends on regulatory evolution in the bloc.
8Bridging Crypto and Fiat Ecosystems
Bybit's move represents a critical step in integrating crypto with traditional finance. Operating dual services under separate licenses while presenting a unified interface simplifies crypto-fiat transitions for users. This model highlights the importance of maintaining regulatory compliance without compromising customer experience, potentially setting an industry benchmark for similar hybrid financial platforms in regulated markets.