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 is not enough to guarantee profitability, as stated by Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. In an interview, Zhou explained that MiCA does not cover the full range of products required for profitability, such as derivatives and tokenized assets, which necessitate additional licenses like MiFID II and Electronic Money Institution (EMI). With the current MiCA framework, companies are limited to fiat-to-crypto and crypto-to-crypto transactions, which is insufficient for a profitable business, Zhou noted. Even large entities like Bybit, the world's second-largest cryptocurrency exchange by trading volume, are not yet breaking even in Europe and require additional licenses to achieve profitability. Zhou stated that Bybit can afford to operate at a loss due to its size, but smaller companies may struggle to survive due to the regulatory requirements. The MiCA grandfathering period is set to end in June, and companies must obtain MiCA authorization to operate across the region by July 1, which is expected to lead to market consolidation and the closure of smaller crypto firms. The regulatory landscape is constantly evolving, with some country regulators pushing for stricter control and increased oversight. Zhou believes that Bybit's decision to choose a stringent regulator in Austria's FMA will pay off in the long run, despite the potential for increased bureaucracy and decreased efficiency.