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

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. In an interview, Zhou explained that a MiCA license only covers a limited range of products and services, excluding derivatives and tokenized assets, which are essential for generating significant revenue. To access these products, companies need to obtain additional licenses, such as MiFID II and Electronic Money Institution (EMI) licenses. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is investing in the long term. Zhou estimates that it may take around two years for the company to become profitable. The CEO also predicted market consolidation, as smaller crypto companies may struggle to meet the regulatory requirements and invest in compliance infrastructure. The MiCA framework is undergoing changes, with some regulators pushing for stricter control and increased oversight. Zhou believes that Bybit's decision to work with a stringent regulator like Austria's FMA will pay off in the long run, despite the potential for increased bureaucracy with the involvement of the European Securities and Markets Authority (ESMA).