Bybit CEO: MiCA License Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is not enough to guarantee profitability, according to Bybit's CEO, Ben Zhou. The current MiCA framework has limitations, excluding key products like derivatives and tokenized assets, which require additional licenses such as MiFID II and Electronic Money Institution licenses. Zhou emphasized that even with a MiCA license, companies like Bybit, the world's second-largest cryptocurrency exchange, are not yet profitable in Europe and are investing for the long term, with a projected break-even point within two years. The impending market consolidation, driven by the MiCA grandfathering period's closure, is expected to impact small to medium-sized crypto companies, leading to a surge in market consolidation. Zhou noted that Bybit's decision to work with a stringent regulator like Austria's FMA will pay off in the long run, despite the varying levels of strictness in MiCA interpretations across countries. As for the potential involvement of the European Securities and Markets Authority, Bybit remains neutral, citing both the benefits of a level playing field and the potential drawbacks of increased bureaucracy.