Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets license is a crucial step for operating in Europe, but according to Bybit's CEO, Ben Zhou, it is not enough to guarantee profitability. Zhou explained that the MiCA license has limitations, as it does not cover a wide range of products such as 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 license. With the current MiCA framework, companies can only facilitate fiat-to-crypto and crypto-to-crypto transactions, which is not sufficient for a profitable business. Even Bybit, the world's second-largest cryptocurrency exchange, is not expected to break even in Europe for at least two years, as it depends on acquiring the necessary licenses. The CEO views this as a long-term investment, stating that the company can afford it due to its size. Market consolidation is anticipated, particularly with the MiCA grandfathering period ending in June, which will likely lead to the closure of many small to medium-sized crypto companies in Europe. The regulatory environment is also undergoing changes, with some countries pushing for stricter control and increased oversight. Zhou believes that Bybit's decision to choose a stringent regulator in Austria will pay off in the long run, despite the potential for increased bureaucracy with the involvement of the European Securities and Markets Authority.