Bybit CEO Claims 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 allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To access these products, companies need to obtain a MiFID II license and an Electronic Money Institution license. Even Bybit, the world's second-largest cryptocurrency exchange, is not expected to break even in Europe for at least two years, depending on the acquisition of necessary licenses. The CEO views this as a long-term investment, stating that the company can afford it due to its size. The upcoming closure of the MiCA grandfathering period is expected to lead to market consolidation, with smaller crypto firms potentially shutting down due to the inability to afford the required licenses and compliance infrastructure. The regulatory environment is also undergoing changes, with some countries advocating 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 regarding the potential involvement of the European Securities and Markets Authority in the regulatory process.