Bybit CEO: 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 is not enough to 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 obtain additional licenses, including MiFID II and Electronic Money Institution licenses. Even Bybit, the second-largest cryptocurrency exchange by trading volume, is not expected to break even in Europe for at least two years, as it awaits the acquisition of necessary licenses. The expiration of the MiCA grandfathering period in June is likely to lead to market consolidation, with smaller crypto firms struggling to meet the regulatory 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 have long-term benefits. The company remains neutral on the potential involvement of the European Securities and Markets Authority in the regulatory process.