Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but according to Bybit CEO Ben Zhou, it is not enough to guarantee profitability. In an interview, Zhou explained that 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 a company to be profitable. To offer these products, companies need to obtain a MiFID II license and an Electronic Money Institution license. Zhou noted 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 world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is relying on its large size to absorb the costs. Zhou estimated that it may take around two years for the company to become profitable, depending on when it acquires the necessary licenses. The CEO also predicted that the crypto market in Europe will experience consolidation, with smaller companies being forced to shut down due to the high costs of compliance and the need for multiple licenses. The MiCA license is currently undergoing changes, with some regulators calling for stricter control and increased oversight. Zhou stated that Bybit chose to register with the Austrian Financial Market Authority, which has a stringent regulatory approach, and is neutral about the potential involvement of the European Securities and Markets Authority in the regulation of crypto assets.