Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Obtaining a Markets in Crypto Assets license is a crucial step for operating in Europe, but according to Bybit's CEO, Ben Zhou, it is not enough to guarantee profitability. 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 need to acquire 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 relies on acquiring the necessary licenses. The CEO views this as a long-term investment, acknowledging that smaller companies may struggle to afford the compliance infrastructure required to operate profitably. The impending market consolidation is expected to impact small to medium-sized crypto companies, as the MiCA grandfathering period comes to a close. Regulators are also calling for stricter control, which may lead to increased oversight by bodies like the European Securities and Markets Authority. 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 introduction of ESMA, citing concerns about decreased efficiency and increased bureaucracy.