Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Acquiring 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 products, companies need to obtain 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 crypto companies may struggle to adapt, leading to market consolidation. The upcoming closure of the MiCA grandfathering period is expected to significantly impact smaller firms, as they must obtain MiCA authorization by July 1 to operate across the region. Zhou predicts that this will lead to a surge in market consolidation, as smaller companies may be forced to shut down due to the inability to afford the required licenses and compliance infrastructure. The regulatory landscape is also evolving, with some countries pushing for stricter control and increased oversight, while others interpret MiCA as a means to attract new business. Bybit has chosen to work with Austria's FMA, a stringent regulator, and remains neutral on the potential involvement of the European Securities and Markets Authority.