Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Obtaining a Markets in Crypto Assets license is a crucial step for operating in Europe, but Bybit's CEO, Ben Zhou, emphasizes that it is not enough to guarantee profitability. According to Zhou, the current MiCA framework has limitations, as it only allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these services, companies need to acquire a MiFID II license and an Electronic Money Institution license. Even Bybit, the world's second-largest cryptocurrency exchange, is not expected to break even in Europe for at least two years, as it awaits the necessary licenses. The upcoming closure of the MiCA grandfathering period is expected to lead to market consolidation, with smaller firms struggling to comply with the regulatory requirements. Zhou notes that Bybit has chosen to work with Austria's FMA, a stringent regulator, which will ultimately benefit the company. The CEO also expresses neutrality regarding the potential involvement of the European Securities and Markets Authority in the regulatory process, citing both potential benefits and drawbacks.