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 to guarantee profitability, according to Bybit CEO Ben Zhou. The current MiCA framework only covers a limited range of products, such as fiat-to-crypto and crypto-to-crypto transactions, and does not include derivatives and tokenized assets. 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, Bybit is not yet profitable in Europe and is at least two years away from breaking even. The company's ability to afford the investment is due to its large size, but smaller firms may struggle to survive due to the need for multiple licenses and significant compliance investments. The upcoming closure of the MiCA grandfathering period is expected to lead to market consolidation, with many small to medium-sized crypto companies likely to shut down. Zhou also discussed the potential changes to the MiCA framework, including the possibility of increased oversight by the European Securities and Markets Authority, and the importance of choosing a stringent regulator to ensure long-term compliance and profitability.