Bybit CEO Emphasizes Need for Multiple Licenses to Achieve Profitability in Europe

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but it is not enough on its own to guarantee profitability, Bybit CEO Ben Zhou emphasized. The MiCA license has limitations, as it does not cover the full spectrum of products necessary for a company to be profitable, such as derivatives and tokenized assets. To offer these products, companies also need to obtain a MiFID II license and an Electronic Money Institution (EMI) license. Zhou pointed out that even with a MiCA license, companies can only engage in fiat-to-crypto and crypto-to-crypto transactions, which restricts their ability to operate a profitable business. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still at least two years away from breaking even in Europe, according to Zhou. The timeline for achieving profitability depends on when the company acquires the necessary additional licenses. Zhou views the current investment in MiCA as a long-term strategy, stating that the company can afford it due to its size. The CEO anticipates that market consolidation is imminent, particularly with the MiCA grandfathering period set to end in June. This deadline will likely lead to the closure of many smaller crypto firms that are unable to obtain the required authorization. Zhou noted that some country regulators are pushing for stricter control and increased oversight, which may lead to changes in the MiCA framework. Bybit has chosen to work with Austria's FMA, a stringent regulator, which Zhou believes will pay off in the long run. The company remains neutral on the potential involvement of the European Securities and Markets Authority (ESMA) in the regulatory process.