Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. The MiCA license has limitations, such as not covering derivatives and tokenized assets, which are essential for a company to be profitable. As a result, firms also need a MiFID II license and an Electronic Money Institution license to operate successfully. Zhou explained that even with a MiCA license, companies can only engage in fiat-to-crypto and crypto-to-crypto transactions, which is not enough to sustain a profitable business. Bybit, the world's second-largest cryptocurrency exchange, is still far from breaking even in Europe and is waiting to acquire the necessary licenses. The company views this as a long-term investment, with profitability expected within two years. The crypto market in Europe is on the verge of consolidation, with smaller companies facing significant challenges due to the need for multiple licenses and compliance infrastructure. The MiCA license is also undergoing changes, with some regulators calling for stricter control and increased oversight. Bybit has chosen to work with a stringent regulator in Austria, which Zhou believes will pay off in the long run. The company remains neutral on the potential involvement of the European Securities and Markets Authority in the regulation of crypto assets.