Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Obtaining a Markets in Crypto Assets license is a crucial step for operating in Europe, but according to Bybit CEO Ben Zhou, it is not enough to guarantee profitability. The current MiCA framework has limitations, as it only allows for fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these services, companies require a MiFID II license and an Electronic Money Institution license. Zhou emphasized that even with a MiCA license, Bybit is not yet profitable in Europe and is at least two years away from breaking even, depending on the acquisition of necessary licenses. The company views its MiCA license as a long-term investment. The upcoming deadline for the MiCA grandfathering period is expected to lead to market consolidation, with smaller crypto companies struggling to meet the regulatory requirements. Zhou noted that Bybit chose to work with a stringent regulator in Austria, which will pay off in the long run, and expressed neutrality regarding the potential involvement of the European Securities and Markets Authority in the regulatory process.