Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Obtaining a Markets in Crypto Assets (MiCA) 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 does not cover a wide range of products such as derivatives and tokenized assets, which are essential for a company to be profitable. To overcome these limitations, companies need to acquire additional licenses, including a MiFID II license and an Electronic Money Institution (EMI) license. Zhou emphasized that even with a MiCA license, companies like Bybit are still at least two years away from breaking even in Europe. The timeline for achieving profitability depends on acquiring the necessary licenses. Zhou also predicted market consolidation, as smaller crypto companies may struggle to meet the requirements and invest in compliance infrastructure. The MiCA license allows a crypto-asset service provider to operate across the European Economic Area (EEA), but the grandfathering period is closing, and firms must obtain MiCA authorization by July 1. Zhou chose to register with Austria's FMA, which he believes will pay off in the long run, despite the varying levels of strictness in different countries. Regarding the potential involvement of the European Securities and Markets Authority (ESMA), Zhou expressed neutrality, citing both the benefits of a level playing field and the potential drawbacks of increased bureaucracy.