Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Obtaining a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. 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 overcome this, companies require additional licenses, including MiFID II and Electronic Money Institution licenses. Even Bybit, the world's second-largest cryptocurrency exchange, is not expected to break even in Europe for at least two years, depending on when it acquires the necessary licenses. The current MiCA framework only allows for fiat-to-crypto and crypto-to-crypto transactions, which is not sufficient for a profitable business. Market consolidation is anticipated, particularly with the MiCA grandfathering period ending soon, which will likely lead to the closure of many small to medium-sized crypto companies. The regulatory environment is also evolving, with some countries pushing for stricter control and increased oversight. Bybit has chosen to work with a stringent regulator in Austria, which is expected to 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.