Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but it is not enough on its own to guarantee profitability, according to Bybit CEO Ben Zhou. The MiCA framework has limitations, as it does not cover the full spectrum of products required for a company to be profitable, such as derivatives and tokenized assets. To offer these products, companies also need to obtain a MiFID II license and an Electronic Money Institution (EMI) license. As a result, even with a MiCA license, many elements of a profitable business cannot be achieved, unless the company already holds multiple licenses. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still some way off from breaking even in Europe, with its timeline dependent on acquiring the necessary licenses. According to Zhou, the company can afford to operate at a loss in the short term due to its size, but he estimates that it will take around two years for the company to become profitable. The upcoming deadline for the MiCA grandfathering period is expected to lead to market consolidation, as smaller crypto companies may struggle to meet the regulatory requirements. The MiCA framework itself is also undergoing changes, with some regulators calling for tighter 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 introduction of a more centralized regulatory body, such as the European Securities and Markets Authority (ESMA), citing both potential advantages and disadvantages.