Bybit CEO: MiCA License Alone 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. The MiCA framework 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 overcome these limitations, companies need to obtain additional licenses, including a MiFID II (Markets in Financial Instruments Directive) license and an Electronic Money Institution (EMI) license. Zhou emphasized that even with a MiCA license, companies like Bybit are restricted to offering limited services, such as fiat-to-crypto and crypto-to-crypto transactions, which are not sufficient to achieve profitability. The CEO noted that Bybit, despite being the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and expects to reach profitability within two years, depending on the acquisition of necessary licenses. The expiration of the MiCA grandfathering period at the end of June is expected to lead to market consolidation, as smaller crypto firms may struggle to meet the regulatory requirements and invest in compliance infrastructure. Zhou expressed neutrality regarding the potential involvement of the European Securities and Markets Authority (ESMA) in regulating the crypto industry, citing both advantages and disadvantages of a more centralized approach.