Bybit CEO: MiCA License Alone 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 covers fiat-to-crypto and crypto-to-crypto transactions, and does not include derivatives and tokenized assets, which are essential for a profitable business. To overcome these limitations, companies need to obtain additional licenses, such as MiFID II and Electronic Money Institution licenses. Even Bybit, the world's second-largest cryptocurrency exchange, is not yet profitable in Europe and is awaiting the acquisition of necessary licenses. Zhou predicts that market consolidation is imminent, particularly with the MiCA grandfathering period ending in June, which will lead to the closure of many small to medium-sized crypto companies. The regulatory landscape is also evolving, with some countries advocating for stricter control and increased oversight by bodies like the European Securities and Markets Authority. Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will have long-term benefits. The company remains neutral on the potential involvement of ESMA, citing concerns about increased bureaucracy and decreased efficiency.