Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Securing 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 MiCA license has limitations, as it only covers a portion of the products needed to generate significant revenue, such as derivatives and tokenized assets. To access these products, companies must also obtain a MiFID II license and an Electronic Money Institution license. Zhou emphasized that even with a MiCA license, many aspects of a profitable business cannot be achieved, making it essential to acquire multiple licenses. Bybit, the world's second-largest cryptocurrency exchange, is still far from breaking even in Europe, with a timeline that depends on obtaining the necessary licenses. The company views its MiCA license as a long-term investment, with profitability expected within two years. The upcoming market consolidation is expected to impact small to medium-sized crypto companies, as the MiCA grandfathering period ends in June, requiring firms to obtain authorization by July 1. Zhou predicts that many smaller firms will shut down due to the inability to afford the necessary investments in compliance infrastructure. The MiCA regulations are also undergoing changes, with some regulators pushing for more centralized control and increased oversight. 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 in the regulatory process.