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 on its own to ensure profitability, as stated by Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. The current MiCA framework has limitations, as it does not cover the full range of products necessary for profitability, such as derivatives and tokenized assets, which require additional licenses like MiFID II and Electronic Money Institution licenses. Zhou emphasized that even with a MiCA license, companies like Bybit cannot engage in all aspects of a profitable business, and that acquiring multiple licenses is essential for success. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is investing in the long term. The company's profitability timeline depends on obtaining the necessary licenses. Market consolidation is expected, particularly with the MiCA grandfathering period ending soon, which will likely lead to the closure of many small to medium-sized crypto companies in Europe. Zhou noted that the regulatory environment is evolving, with some countries interpreting MiCA differently and the potential for increased oversight by bodies like the European Securities and Markets Authority.