Bybit CEO Claims MiCA License Alone 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, says Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. In an interview, Zhou emphasized that 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 profits. To overcome this, companies must also obtain a MiFID II license and an Electronic Money Institution license. The current MiCA framework only allows for fiat-to-crypto and crypto-to-crypto transactions, leaving out many elements necessary for a profitable business. Even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is not expected to break even in Europe for at least two years, pending the acquisition of the necessary licenses. Zhou views this as a long-term investment, stating that the company can afford it due to its size. Market consolidation is anticipated, particularly with the MiCA grandfathering period ending in June, which will likely lead to the closure of many smaller crypto firms. The regulatory landscape is also evolving, with some countries pushing for stricter control and increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, 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 in the regulatory process.