The world’s second largest cryptocurrency exchange, BYBIT introduces spot margin trading for European users of the platform with up to 10 times leverage, complying with local markets under the Crypto Assets (MICA) regime.
The service, announced Monday, allows Austria-based BYBit EU users to borrow money from their existing crypto stocks.
For example, $100 users can borrow additional funds to execute $1,000 transactions using 10x leverage to amplify both potential profits and losses from small market movements, Bybit said in a press release.
Bedding in the European mica regime has seen regulated companies explore a wider range of crypto products. For example, Bitpanda, which is regulated by the Austrian Financial Markets Authority (FMA), introduced 10x spot margin trading at the end of last month.
The BYBIT EU spot margins build up losses and incorporate safeguards such as real-time interest rates, margin requirements and collateral ratios and liquidation controls to prevent assets from being made, the exchange says.
“Spot margin trading is a powerful tool, but only when combined with transparency, risk education and user control,” Bybit EU CEO Mazurka Zeng said in a statement.