Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but according to Bybit CEO Ben Zhou, it is not enough to guarantee profitability. The MiCA license has limitations, as it does not cover a wide range of products such as derivatives and tokenized assets, which are essential for generating revenue. To overcome this, companies need to obtain additional licenses, including a MiFID II license and an Electronic Money Institution license. Zhou emphasized that even with a MiCA license, businesses are restricted to fiat-to-crypto and crypto-to-crypto transactions, making it challenging to achieve profitability without multiple licenses. Bybit, the second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is investing in the long term. The company anticipates becoming profitable within two years, depending on when it acquires the necessary licenses. The upcoming market consolidation is expected to impact small to medium-sized crypto companies, as the MiCA grandfathering period comes to an end. The regulatory landscape is also evolving, with some country regulators pushing for stricter control and increased oversight. Zhou believes that Bybit's decision to work with a stringent regulator like Austria's FMA will pay off in the long run, despite the potential drawbacks of a more centralized regulatory approach.