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 it does not guarantee profitability, according to Ben Zhou, CEO of Bybit, a leading cryptocurrency exchange. In an interview, Zhou emphasized that the MiCA license has limitations, as it only covers a narrow range of products and does not include derivatives and tokenized assets, which are essential for generating significant revenue. To overcome these limitations, companies must also obtain a MiFID II license and an Electronic Money Institution license. Zhou noted that even with a MiCA license, companies like Bybit are still far from breaking even in Europe, with a projected timeline of at least two years. The CEO attributed this delay to the time required to acquire the necessary licenses. Zhou also predicted market consolidation, as smaller crypto firms may struggle to meet the regulatory requirements and invest in compliance infrastructure. The MiCA framework is currently undergoing changes, with some regulators pushing for stricter control and increased oversight. Zhou expressed neutrality regarding the potential involvement of the European Securities and Markets Authority, citing both potential benefits and drawbacks. Bybit has chosen to work with Austria's FMA, a stringent regulator, in anticipation of long-term benefits.