Bybit Hack: $1.4 Billion Vanished – What MiCA Regulations Offer for Client Fund Protection ?
- BECTRA
- Feb 26
- 2 min read
…If you are a Crypto-Asset Service Provider (CASP),Your survival may depend on it!
The hack occurred during the usual transfer of funds from the cold wallet to the hot wallet, in a multi-signature context.
MiCA regulations are crystal clear: as a Crypto-Asset Service Provider (CASP), you have strict obligations to protect your clients' funds and digital assets.
Any failure to comply can lead to sanctions, business shutdowns, and irreversible loss of trust.
🚨 1. Securing Crypto Assets: A Vital Obligation
Make no mistake: If you hold your clients’ crypto-assets, they are not yours !
👉 What MiCA says :
✅ Strict separation: Use distinct accounts and wallets to avoid any confusion between your assets and those of your clients.
✅ Robust protection measures: Implement mechanisms to prevent loss or misappropriation, even in the event of bankruptcy.
❌ Critical mistake: Never use your clients’ crypto-assets for your own needs—doing so could lead to severe sanctions.
🛑 2. Client Deposited Funds: Handle with Extreme Caution
⚠️ If you are neither a credit institution, electronic money institution, nor a payment institution, your obligations are even stricter!
✅ Absolute prohibition on using these funds for your business operations.
✅ Ensure maximum protection to prevent any form of misappropriation.
🏦 3. Secure Fund Deposits: A Rule to Apply Immediately
As soon as you receive client funds, here’s what you must do without delay:
✔️ Mandatory deposit within 24 hours in a bank or central bank.
✔️ Separate account: No mixing with your own funds. This account must be clearly identifiable to avoid any suspicion of irregularity.
💳 4. Payment Services: Don’t Fall Into Illegality!
If you provide payment services related to crypto-assets, even a minor compliance mistake can cost you heavily.
🔎 Two options to stay compliant :
1️⃣ Obtain an official authorization under EU Directive 2015/2366 (PSD2).
2️⃣ Work with an approved third-party provider who already holds this authorization.
⚠️ Leave no room for mistakes: your responsibility is at stake!
❌ Failure to Comply Means:
Putting your clients’ funds at risk.
Facing heavy sanctions—or even business closure.
Watching your clients’ trust collapse.
💡 Check your compliance, adjust your processes, and protect yourself before it’s too late.
This won’t necessarily stop sophisticated attacks like Lazarus, but it will significantly mitigate the damage.
Priority : Secure what you can before it's too late.
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