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 covers fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these products, companies require 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 acquiring the necessary licenses. Zhou views this as a long-term investment, stating that the company can afford it due to its size. The crypto market in Europe is on the verge of consolidation, with the MiCA grandfathering period ending in June, which will likely lead to the closure of many small to medium-sized crypto companies. The regulatory environment is also evolving, with some countries pushing for stricter 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 in the regulatory process.