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 according to Bybit CEO Ben Zhou, it is merely the first hurdle in a long process. Zhou emphasized that the current MiCA framework has limitations, as it only permits fiat-to-crypto and crypto-to-crypto transactions, excluding other profitable products such as derivatives and tokenized assets. To offer these services, companies require additional licenses, including a MiFID II license and an Electronic Money Institution license. Even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is not expected to break even in Europe for at least two years, as it awaits the acquisition of necessary licenses. The CEO views this investment as a long-term strategy, acknowledging that smaller companies may struggle to survive due to the costs associated with obtaining multiple licenses and complying with regulatory requirements. The impending market consolidation is expected to impact small to medium-sized crypto companies, particularly with the MiCA grandfathering period ending soon. As regulators continue to evolve the MiCA framework, some are advocating for stricter control, while others are pushing for a more level playing field. Bybit has chosen to work with Austria's FMA, a regulator known for its stringent standards, in anticipation of potential benefits in the future.