Bybit CEO Claims MiCA License 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, according to Bybit CEO Ben Zhou. The current MiCA framework has limitations, as it only covers fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these services, companies require a MiFID II license and an Electronic Money Institution license. Even Bybit, the world's second-largest cryptocurrency exchange, is not yet profitable in Europe and is awaiting the acquisition of necessary licenses. The CEO estimates that it may take around two years for the company to break even. The impending market consolidation is expected to impact small to medium-sized crypto companies, as the MiCA grandfathering period is set to end soon. 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 have long-term benefits. The company remains neutral on the potential involvement of ESMA, citing both advantages and disadvantages of a more centralized regulatory approach.