Bybit CEO: MiCA License Alone 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 emphasized that a MiCA license only permits fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these services, companies must also obtain a MiFID II license and an Electronic Money Institution (EMI) license. Even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is at least two years away from breaking even in Europe. The company's profitability timeline is contingent upon acquiring the necessary licenses. Zhou noted that market consolidation is imminent, particularly with the MiCA grandfathering period ending in June, which will likely lead to the demise of many smaller crypto firms. The CEO chose to register with Austria's FMA, a stringent regulator, which he believes will yield long-term benefits. Zhou expressed neutrality regarding the potential involvement of the European Securities and Markets Authority (ESMA) in regulating the crypto market, citing concerns about increased bureaucracy and decreased efficiency.