Bybit CEO Claims 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 allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these, companies require a MiFID II license and an Electronic Money Institution (EMI) license. Zhou noted that even with a MiCA license, Bybit is not yet profitable in Europe and is still two years away from breaking even. The timeline for profitability depends on acquiring the necessary licenses. The CEO views the MiCA license as a long-term investment for the company. With the MiCA grandfathering period ending soon, smaller crypto firms face significant challenges, and market consolidation is expected. Regulators are also calling for tighter control, and the European Securities and Markets Authority (ESMA) is granting increased oversight. Zhou believes that Bybit's choice of a stringent regulator in Austria will pay off in the long run. The company remains neutral on the potential involvement of ESMA in the regulatory process.