Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Obtaining 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 current MiCA framework has limitations, as it only covers fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these products, companies require a MiFID II license and an Electronic Money Institution (EMI) license. Even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is not yet profitable in Europe and is waiting to acquire the necessary licenses. The company's profitability timeline is estimated to be around two years. The MiCA license allows crypto-asset service providers to operate across the European Economic Area (EEA), but the upcoming market consolidation is expected to impact small to medium-sized crypto companies. The MiCA grandfathering period is closing, and firms must obtain MiCA authorization by July 1, which may lead to the shutdown of many smaller crypto firms. The regulatory environment is also undergoing changes, with some country regulators calling for tighter control and increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, and remains neutral about the potential involvement of the European Securities and Markets Authority (ESMA).