Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for cryptocurrency exchanges to operate in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. In an interview, Zhou stated that the MiCA license only covers a limited range of products and that companies need to obtain additional licenses, such as MiFID II and Electronic Money Institution (EMI) licenses, to offer a broader range of services and achieve profitability. Even Bybit, the second-largest cryptocurrency exchange by trading volume, is at least two years away from breaking even in Europe, with the timeline dependent on acquiring the necessary licenses. Zhou predicts that the current regulatory environment will lead to market consolidation, with smaller crypto firms struggling to comply with the stringent requirements. The MiCA framework is also undergoing changes, with some regulators pushing for tighter control and increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, 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 (ESMA) in the regulatory process.