Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Obtaining a Markets in Crypto Assets (MiCA) license is a crucial step for cryptocurrency exchanges operating in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. In a recent interview, Zhou emphasized that a MiCA license only permits certain activities, such as fiat-to-crypto and crypto-to-crypto transactions, and does not cover the full range of products necessary for a company to be profitable. To achieve this, companies also need to acquire a MiFID II license and an Electronic Money Institution (EMI) license. Zhou noted that even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is at least two years away from breaking even in Europe, due to the time it takes to acquire the necessary licenses. The CEO believes that market consolidation is inevitable, particularly with the MiCA grandfathering period coming to a close, which will likely lead to the demise of many smaller crypto firms. Zhou also discussed the potential changes to MiCA regulations, with some country regulators pushing for stricter control and increased oversight. Bybit has chosen to work with Austria's FMA, a regulator known for its stringent standards, which Zhou believes will pay off in the long run.