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 is not enough on its own to guarantee profitability, according to Ben Zhou, CEO of Bybit, a leading cryptocurrency exchange. Zhou emphasized that to achieve profitability, companies also require a MiFID II license and an Electronic Money Institution (EMI) license, as MiCA only covers a limited range of products such as fiat-to-crypto and crypto-to-crypto transactions. Even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is not expected to break even in Europe for at least two years, pending the acquisition of necessary licenses. The current MiCA framework restricts the scope of operations, limiting the potential for profitability. Market consolidation is anticipated, particularly with the impending closure of the MiCA grandfathering period, which may lead to the demise of smaller crypto firms. Regulators are also calling for stricter controls, with the European Securities and Markets Authority (ESMA) seeking increased oversight. Bybit has chosen to work with Austria's FMA, a stringent regulator, in anticipation of long-term benefits. The company remains neutral regarding the potential involvement of ESMA in regulating the crypto industry.