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 it does not guarantee profitability, as it has limitations, such as not covering derivatives and tokenized assets, Bybit CEO Ben Zhou stated in an interview. To achieve profitability, companies also need to obtain a MiFID II license and an Electronic Money Institution license. Zhou mentioned that even with a MiCA license, companies can only engage in 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, with profitability expected within two years. The CEO anticipates market consolidation, as smaller crypto firms may struggle to obtain the necessary licenses and comply with regulations. The MiCA license allows crypto-asset service providers to operate across the European Economic Area, but the grandfathering period is ending, and firms must obtain authorization by July 1. Zhou believes that this deadline will lead to the closure of many smaller crypto firms, resulting in market consolidation. The regulatory environment is also evolving, with some country regulators pushing for stricter control and increased oversight. Bybit chose to register with Austria's FMA, which Zhou believes will pay off in the long run, despite the regulator's stringent requirements.