MiCA License Insufficient for Profitability in Europe, Says Bybit CEO

Securing a Markets in Crypto Assets license is a crucial step for operating in Europe, but it does not guarantee profitability, according to Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. 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 generating revenue. To offer these products, companies need to obtain additional licenses, including the MiFID II and Electronic Money Institution licenses. Zhou noted that even with a MiCA license, companies like Bybit can only facilitate fiat-to-crypto and crypto-to-crypto transactions, which are not enough to ensure profitability. The company is currently investing in the European market, but it may take up to two years to break even. The CEO predicts that the upcoming deadline for the MiCA grandfathering period will lead to market consolidation, as smaller crypto companies may struggle to meet the regulatory requirements and obtain the necessary licenses. The regulatory landscape in Europe is evolving, with some countries advocating for stricter control and increased oversight. Bybit has chosen to work with a stringent regulator in Austria, which Zhou believes will pay off in the long run. The company remains neutral on the potential involvement of the European Securities and Markets Authority in the regulatory process, citing both potential benefits and drawbacks.