Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets license to operate in Europe is a significant step, but it does not 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 at least two years away from breaking even in Europe. The company's timeline for profitability depends on acquiring the necessary licenses. Zhou notes that market consolidation is imminent, particularly with the MiCA grandfathering period ending soon, which will likely lead to the closure of many small to medium-sized crypto companies. The regulatory landscape is also evolving, with some country regulators pushing for stricter control and increased oversight. Bybit has chosen to work with a stringent regulator in Austria, which Zhou believes will have long-term benefits. The company remains neutral on the potential involvement of the European Securities and Markets Authority in regulating the crypto industry.