Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets license is a crucial step for operating in Europe, but it does not guarantee profitability, according to Bybit's CEO, Ben Zhou. The MiCA license has limitations, as it does not cover a wide range of products such as derivatives and tokenized assets, which are essential for generating revenue. To offer these products, companies need to obtain a MiFID II license and an Electronic Money Institution license. Zhou explained that even with a MiCA license, companies can only facilitate fiat-to-crypto and crypto-to-crypto transactions, which is not enough to sustain a profitable business. Bybit, the second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and expects to achieve profitability within two years, depending on when it acquires the necessary licenses. The CEO believes that market consolidation is inevitable, especially with the MiCA grandfathering period ending soon, which will lead to the closure of many small to medium-sized crypto companies in Europe. Zhou also discussed the potential changes to MiCA, with some regulators pushing for stricter control and increased oversight, and the potential implications of bringing the European Securities and Markets Authority into the mix.