Bybit CEO Claims 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 to guarantee profitability, says Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. Zhou emphasized that the MiCA license has limitations, as it does not cover the full range of products required for profitability, such as derivatives and tokenized assets, which necessitate a MiFID II license and an Electronic Money Institution license. In an interview, Zhou stated that even with a MiCA license, companies like Bybit can only engage in fiat-to-crypto and crypto-to-crypto transactions, excluding other essential aspects of a profitable business. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe, with its timeline for profitability dependent on acquiring the necessary licenses. Zhou estimates that it may take around two years for the company to become profitable. The CEO also predicted market consolidation, as smaller crypto companies struggle to meet the requirements for MiCA authorization, which must be obtained by July 1. The MiCA license is subject to change, with some regulators pushing for stricter control and increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will pay off in the long run. He also expressed neutrality regarding the potential involvement of the European Securities and Markets Authority in regulating the crypto industry.