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 is not enough to guarantee profitability, according to Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. In an interview, Zhou emphasized that a MiCA license only covers a limited range of products and services, such as fiat-to-crypto and crypto-to-crypto transactions, and does not include derivatives and tokenized assets, which are essential for generating significant revenue. To offer these products, companies need to obtain additional licenses, including a MiFID II (Markets in Financial Instruments Directive) license and an Electronic Money Institution (EMI) license. Zhou noted that even with a MiCA license, Bybit is not yet profitable in Europe and is unlikely to break even for at least two years, as the company needs to acquire the necessary licenses and invest in compliance infrastructure. The CEO predicted that the upcoming deadline for the MiCA grandfathering period, which closes at the end of June, will lead to market consolidation, as smaller crypto firms may struggle to meet the regulatory requirements and obtain the necessary licenses. Zhou also commented on the potential changes to the MiCA framework, including the possible introduction of stricter regulations and increased oversight by the European Securities and Markets Authority (ESMA). Bybit has chosen to work with the Austrian Financial Market Authority (FMA), which Zhou believes will pay off in the long run due to its stringent regulatory approach.