Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets license to operate in Europe is a significant achievement, but it is not a guarantee of profitability, according to Bybit CEO Ben Zhou. The MiCA framework has limitations, as it does not cover the full range of products required to generate substantial revenue, such as derivatives and tokenized assets. To offer these products, companies need to obtain additional licenses, including a MiFID II license and an Electronic Money Institution license. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe, with a timeline dependent on acquiring the necessary licenses. The company views its MiCA license as a long-term investment, with profitability expected within two years. The crypto market in Europe is on the verge of consolidation, with the MiCA grandfathering period ending in June, which is expected to lead to the closure of many small to medium-sized crypto companies. Regulators are also calling for tighter control and increased oversight, which may impact the profitability of crypto firms. Bybit has chosen to work with a stringent regulator in Austria, which is expected to pay off in the long run. The company remains neutral on the potential involvement of the European Securities and Markets Authority in regulating the crypto market.