Bybit CEO Claims MiCA License Alone Is Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but Bybit's CEO, Ben Zhou, believes it is not enough to guarantee profitability. 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 address this, companies also require a MiFID II license and an Electronic Money Institution license. According to Zhou, even with a MiCA license, companies can only engage in fiat-to-crypto and crypto-to-crypto transactions, which restricts their ability to operate a profitable business. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is reliant on acquiring the necessary licenses to achieve profitability. Zhou estimates that this could take around two years. The crypto industry in Europe is approaching a critical juncture, with the MiCA grandfathering period set to end in June, which will lead to market consolidation and the potential demise of smaller crypto firms. The regulatory environment is also evolving, with some countries advocating for stricter control and increased oversight from bodies like the European Securities and Markets Authority. Zhou remains neutral on the potential involvement of ESMA, citing both advantages and disadvantages of a more centralized regulatory approach.