Bybit CEO Highlights Limitations of MiCA License for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is insufficient on its own to generate profits, according to Bybit CEO Ben Zhou. The current MiCA framework only allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets that require additional licenses such as MiFID II and Electronic Money Institution licenses. Even Bybit, the world's second-largest cryptocurrency exchange, is at least two years away from breaking even in Europe due to the need for these extra licenses. The limited scope of MiCA has significant implications for smaller crypto companies, with market consolidation expected as the grandfathering period ends. Regulators are also considering changes to MiCA, with some pushing for tighter control and increased oversight by bodies like the European Securities and Markets Authority, which could further impact the profitability of crypto-asset service providers in the region.