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 Bybit CEO Ben Zhou. The current MiCA framework has limitations, as it only permits fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To overcome these restrictions, companies must also obtain a MiFID II license and an Electronic Money Institution license. Even Bybit, the second-largest cryptocurrency exchange by trading volume, is at least two years away from breaking even in Europe. Zhou views the MiCA license as a long-term investment, acknowledging that market consolidation is imminent due to the upcoming deadline for small to medium-sized crypto companies to obtain MiCA authorization. The CEO remains neutral about the potential involvement of the European Securities and Markets Authority in regulating the crypto market, citing concerns about increased bureaucracy and decreased efficiency.