Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets license is a crucial step for operating in Europe, but Bybit's CEO, Ben Zhou, emphasizes that it is not enough on its own to ensure profitability. In an interview, Zhou explained that the MiCA license has limitations, such as not covering derivatives and tokenized assets, which are essential for a company to be profitable. To overcome these limitations, companies also require a MiFID II license and an Electronic Money Institution license. Zhou noted that even with a MiCA license, a company can only facilitate fiat-to-crypto and crypto-to-crypto transactions, which is not sufficient for a profitable business model. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe, with Zhou estimating that it may take around two years to achieve profitability, depending on when the company acquires the necessary licenses. The current MiCA framework is undergoing changes, with some regulators pushing for stricter control and increased oversight. Zhou believes that market consolidation is inevitable, particularly with the MiCA grandfathering period ending soon, which will likely lead to the closure of many smaller crypto firms. He also mentioned that Bybit chose to work with a stringent regulator in Austria, which will pay off in the long run, and remains neutral on the potential involvement of the European Securities and Markets Authority in the regulatory process.