Bybit CEO Claims MiCA License Alone is 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, as stated by Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. In an interview, Zhou emphasized that the MiCA license has limitations, as it does not cover the full spectrum of products required for profitability, such as derivatives and tokenized assets, which necessitate a MiFID II license and an Electronic Money Institution (EMI) license. The current MiCA framework only allows for fiat-to-crypto and crypto-to-crypto transactions, which restricts the potential for profitability. Even prominent exchanges like Bybit, the world's second-largest cryptocurrency exchange by trading volume, are not yet profitable in Europe and are awaiting the acquisition of necessary licenses. Zhou stated that Bybit can afford to operate under the current MiCA license due to its size, but it is a long-term investment, and the company expects to become profitable within two years. The market is on the verge of consolidation, particularly with the impending closure of the MiCA grandfathering period, which will likely lead to the demise of many smaller crypto firms. The CEO noted that market consolidation is inevitable, as smaller companies struggle to obtain the necessary licenses and comply with regulatory requirements. The MiCA license itself is undergoing changes, with some regulators advocating for stricter control and increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will yield benefits in the long run.