Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for cryptocurrency trading platforms to operate in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. In an interview, Zhou stated that the MiCA license only covers a limited range of products and that companies need to obtain additional licenses, such as MiFID II and Electronic Money Institution (EMI) licenses, to offer a wider range of services and achieve profitability. Zhou noted that even with a MiCA license, companies like Bybit are still at least two years away from breaking even in Europe, and that the timeline for achieving profitability depends on acquiring the necessary licenses. The CEO also predicted that the upcoming deadline for MiCA authorization will lead to market consolidation, with smaller crypto companies struggling to comply with regulatory requirements and larger companies better positioned to invest in compliance infrastructure. Zhou expressed a neutral stance on the potential involvement of the European Securities and Markets Authority (ESMA) in regulating the crypto industry, citing both potential benefits and drawbacks to a more centralized regulatory approach.