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

Securing a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben 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 require 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 acquisition of necessary licenses. The CEO views this as a long-term investment, acknowledging that smaller companies may struggle to meet the regulatory requirements, leading to market consolidation. The MiCA grandfathering period is set to end, and companies must obtain authorization by July 1, which may result in the closure of smaller crypto firms. Zhou notes that Bybit chose to register with Austria's FMA, a stringent regulator, which will ultimately benefit the company. The CEO remains neutral regarding the potential involvement of the European Securities and Markets Authority, citing both advantages and disadvantages of a more centralized regulatory approach.