Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Obtaining a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but it does not guarantee profitability, as it only covers a limited range of products, Bybit CEO Ben Zhou explained in an interview. To achieve profitability, companies also require a MiFID II license and an Electronic Money Institution (EMI) license, which enable the offering of derivatives and tokenized assets. The current MiCA framework restricts companies to fiat-to-crypto and crypto-to-crypto transactions, limiting their ability to generate revenue. Even major players like Bybit are not yet profitable in Europe and are investing in the long term, with a projected break-even point of around two years. The impending closure of the MiCA grandfathering period is expected to lead to market consolidation, as smaller companies struggle to meet the regulatory requirements and invest in compliance infrastructure. The MiCA regulations are also undergoing changes, with some regulators pushing for more centralized control and increased oversight. Bybit has chosen to work with a stringent regulator in Austria, which is expected to pay off in the long run, and remains neutral on the potential involvement of the European Securities and Markets Authority (ESMA) in the regulatory process.