Bybit CEO Claims MiCA License Alone is Insufficient for Profitability in Europe

Obtaining 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 require a MiFID II license and an Electronic Money Institution license. 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 at the end of June is expected to lead to market consolidation, with smaller crypto firms facing significant challenges in meeting the new regulatory requirements. The MiCA framework is also undergoing changes, with some regulators pushing for stricter control and increased oversight. Bybit has chosen to work with Austria's FMA, a regulator known for its stringent standards, in anticipation of long-term benefits. The company remains neutral on the potential involvement of the European Securities and Markets Authority in the regulatory process, citing concerns about increased bureaucracy and decreased efficiency.