Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Obtaining 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 allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To access these products, companies need to acquire a MiFID II license and an Electronic Money Institution license. Even Bybit, the second-largest cryptocurrency exchange, is not expected to break even in Europe for at least two years, as it awaits the necessary licenses. The upcoming deadline for the MiCA grandfathering period is expected to lead to market consolidation, with smaller crypto firms facing significant challenges in meeting the regulatory requirements. As the regulatory landscape continues to evolve, 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 the regulatory process.