MiCA License Alone Insufficient for Profitability in Europe, Says Bybit CEO

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for cryptocurrency trading platforms to operate in Europe, but it is not enough on its own to guarantee profitability, according to Bybit CEO Ben Zhou. In a recent interview, Zhou emphasized that a MiCA license only permits fiat-to-crypto and crypto-to-crypto transactions, leaving out other essential products like derivatives and tokenized assets that are necessary for a business to be profitable. To offer these products, 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 not expected to break even in Europe for at least two years, as it awaits the acquisition of the necessary licenses. Zhou views the current MiCA framework as a long-term investment for Bybit, acknowledging that smaller crypto companies may struggle to adapt and may face consolidation. The CEO also noted that the interpretation of MiCA regulations varies across European countries, with some adopting a more stringent approach than others. As the MiCA grandfathering period comes to a close, smaller crypto firms are facing a critical juncture, and many are expected to shut down due to the significant investment required to comply with the regulations and obtain the necessary licenses.