Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Acquiring a Markets in Crypto Assets license is a crucial step for operating in Europe, but it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. 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. Even Bybit, the world's second-largest cryptocurrency exchange, is not expected to break even in Europe for at least two years, as it awaits the acquisition of necessary licenses. The crypto industry in Europe is at a critical juncture, with the MiCA grandfathering period ending soon, likely leading to market consolidation and the shutdown of smaller crypto firms. Regulators are also calling for stricter control and increased oversight, which may impact the profitability of crypto companies. Zhou believes that Bybit's decision to work with a stringent regulator like Austria's FMA will pay off in the long run, despite the potential for increased bureaucracy with the involvement of the European Securities and Markets Authority.