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 does not guarantee profitability, as stated by Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. Zhou emphasized that the MiCA license has limitations, as it does not cover a wide range of products such as derivatives and tokenized assets, which are essential for generating significant revenue. To overcome these limitations, companies must also obtain a MiFID II license and an Electronic Money Institution (EMI) license. In an interview, Zhou explained that the current MiCA framework only allows for fiat-to-crypto and crypto-to-crypto transactions, leaving out many key elements required for a profitable business. Even large entities like Bybit, the world's second-largest cryptocurrency exchange by trading volume, are not yet profitable in Europe and are still in the process of acquiring the necessary licenses. Zhou predicts that market consolidation is imminent, particularly with the MiCA grandfathering period ending in June, which will likely lead to the closure of many small to medium-sized crypto companies in Europe. The CEO believes that Bybit will become profitable within two years, considering it a long-term investment. The regulatory landscape is also evolving, with some country regulators advocating for stricter control and increased oversight by bodies like the European Securities and Markets Authority (ESMA). Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will yield benefits in the long run. Ultimately, the CEO remains neutral about the potential involvement of ESMA, citing both the benefits of a level playing field and the drawbacks of increased bureaucracy.