Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is not enough on its own to generate a profit, according to Bybit CEO Ben Zhou. The current MiCA framework only allows for fiat-to-crypto and crypto-to-crypto transactions, leaving out other essential products like derivatives and tokenized assets that require a MiFID II license and an Electronic Money Institution license to be profitable. Even Bybit, the second-largest cryptocurrency exchange by trading volume, is not expected to break even in Europe for at least two years, depending on when it obtains the necessary licenses. Zhou views this as a long-term investment, stating that the company can afford it due to its size. The impending closure of the MiCA grandfathering period at the end of June is expected to lead to market consolidation, with smaller crypto firms facing significant challenges in meeting the regulatory requirements. The MiCA license itself is subject to change, with some regulators pushing for stricter control and increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will have long-term benefits. The potential involvement of the European Securities and Markets Authority in the regulatory process is viewed as neutral by Bybit, as it could lead to a more level playing field but also increased bureaucracy.