Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but it does not guarantee profitability, according to Bybit CEO Ben Zhou. In an interview, Zhou emphasized that the MiCA license has limitations, as it only covers a portion of the products required to generate significant revenue, such as derivatives and tokenized assets. To access these products, companies must also obtain a MiFID II license and an Electronic Money Institution (EMI) license. Zhou noted that even with a MiCA license, companies like Bybit are restricted to fiat-to-crypto and crypto-to-crypto transactions, which are not enough to ensure profitability. As a result, Bybit is at least two years away from breaking even in Europe, with the timeline dependent on acquiring the necessary licenses. The CEO views the MiCA license as a long-term investment, acknowledging that market consolidation is imminent, particularly with the MiCA grandfathering period ending in June. This deadline is expected to lead to the closure of many small to medium-sized crypto companies in Europe, as they struggle to meet the regulatory requirements. Zhou also discussed the potential changes to MiCA, including the possibility of tighter control and increased oversight by bodies like the European Securities and Markets Authority (ESMA). Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will pay off in the long run. Regarding the potential involvement of ESMA, Zhou expressed neutrality, citing both the benefits of a level playing field and the potential drawbacks of increased bureaucracy.