Bybit CEO: MiCA License Alone 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, according to Bybit CEO Ben Zhou. The current MiCA framework has limitations, as it only covers a portion of the products needed to turn a profit, such as derivatives and tokenized assets. To overcome these limitations, companies must also obtain a MiFID II license and an Electronic Money Institution (EMI) license. Zhou noted that even with a MiCA license, companies like Bybit are at least two years away from breaking even in Europe, as they need to acquire the necessary licenses to expand their product offerings. The CEO believes that market consolidation is inevitable, particularly with the MiCA grandfathering period ending in June, which will force many small to medium-sized crypto companies to either obtain the necessary licenses or cease operations. Zhou chose to register Bybit with Austria's FMA, a stringent regulator, which he believes will pay off in the long run. He also expressed neutrality regarding the potential involvement of the European Securities and Markets Authority (ESMA) in regulating the crypto market, citing both potential benefits and drawbacks.