Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Obtaining 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 offer these services, companies need to acquire 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, as it depends on obtaining the necessary licenses. Zhou views the current MiCA license as a long-term investment, acknowledging that market consolidation is imminent, particularly with the MiCA grandfathering period ending in June. This deadline is expected to lead to the closure of many small to medium-sized crypto companies in Europe, as they struggle to meet the regulatory requirements and invest in compliance infrastructure. 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 have long-term benefits. The company remains neutral on the potential involvement of the European Securities and Markets Authority in the regulatory process.