Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but it does not guarantee profitability, according to Bybit CEO Ben Zhou. In an interview, Zhou emphasized that a MiCA license only allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets that require a MiFID II license and an Electronic Money Institution (EMI) license. Even Bybit, the second-largest cryptocurrency exchange by trading volume, is not expected to break even in Europe for at least two years, pending the acquisition of necessary licenses. Zhou noted that smaller crypto companies face significant challenges due to the impending closure of the MiCA grandfathering period, which may lead to market consolidation. The regulatory landscape is also evolving, with some countries pushing for stricter control and increased oversight by bodies like the European Securities and Markets Authority (ESMA). Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will yield long-term benefits. Regarding the potential involvement of ESMA, Zhou expressed neutrality, citing both the benefits of a level playing field and the potential drawbacks of increased bureaucracy.