Bybit CEO Claims MiCA License Alone is 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 MiCA license has limitations, as it does not cover the full range of products required for profitability, such as derivatives and tokenized assets. To offer these products, companies need to acquire a MiFID II license and an Electronic Money Institution (EMI) license. Zhou explained that even with a MiCA license, companies can only facilitate fiat-to-crypto and crypto-to-crypto transactions, which is not enough to sustain a profitable business. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is relying on its size to absorb the costs. The company expects to become profitable within two years, depending on when it acquires the necessary licenses. The upcoming closure of the MiCA grandfathering period is expected to lead to market consolidation, as smaller crypto companies may struggle to meet the regulatory requirements. Zhou noted that some country regulators are pushing for stricter control and increased oversight, which could impact the profitability of crypto companies. Bybit has chosen to work with a stringent regulator in Austria, which Zhou believes will pay off in the long run. The company remains neutral on the potential involvement of the European Securities and Markets Authority (ESMA) in regulating the crypto industry.