Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Securing a 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 license only covers a limited range of products, excluding derivatives and tokenized assets, which require additional licenses such as MiFID II and Electronic Money Institution licenses. Even with a MiCA license, companies like Bybit, the world's second-largest cryptocurrency exchange, are not yet profitable in Europe. Zhou estimates that it may take around two years for the company to break even, depending on when they acquire the necessary licenses. The current MiCA framework restricts the types of products that can be offered, making it challenging for companies to turn a profit. The CEO believes that market consolidation is inevitable, particularly with the MiCA grandfathering period ending soon, which will force smaller crypto companies to either obtain the necessary licenses or cease operations. The regulatory landscape is also evolving, with some countries pushing for stricter controls and increased oversight. Bybit has chosen to work with a stringent regulator in Austria, which Zhou believes will pay off in the long run. However, the company remains neutral on the potential involvement of the European Securities and Markets Authority in the regulatory process.