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 CEO Ben Zhou. The current MiCA framework has limitations, excluding key products like derivatives and tokenized assets, which necessitate additional licenses such as MiFID II and Electronic Money Institution licenses. Zhou emphasized that even with a MiCA license, companies like Bybit, the world's second-largest cryptocurrency exchange, are still far from breaking even in Europe. The timeline for profitability depends on acquiring the necessary licenses, with Zhou estimating it may take around two years. The crypto industry in Europe is on the cusp of significant changes, with the MiCA grandfathering period ending soon, which is expected to lead to market consolidation and the demise of smaller crypto firms. Zhou noted that Bybit chose to work with a stringent regulator in Austria, which will pay off in the long run, and expressed neutrality regarding the potential increased oversight by the European Securities and Markets Authority.