Bybit CEO: MiCA License Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but it does not guarantee profitability, according to Bybit CEO Ben Zhou. In an interview, Zhou explained that the MiCA framework has limitations, as it does not cover derivatives and tokenized assets, which are essential for a company to be profitable. To offer these products, companies need to obtain a MiFID II license and an Electronic Money Institution (EMI) license in addition to the MiCA license. Zhou noted that even with a MiCA license, companies can only facilitate fiat-to-crypto and crypto-to-crypto transactions, which is not enough to sustain a profitable business. Bybit, the second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is relying on its size to afford the investment. Zhou predicted that it may take around two years for the company to become profitable. The CEO also warned that the upcoming deadline for the MiCA grandfathering period, which closes at the end of June, will likely lead to market consolidation, as smaller crypto companies may struggle to obtain the necessary licenses and comply with regulations. The MiCA framework is also undergoing changes, with some regulators pushing for stricter control and increased oversight. Zhou stated that Bybit chose to work with a stringent regulator in Austria and remains neutral on the potential involvement of the European Securities and Markets Authority (ESMA) in the regulatory process.