Bybit CEO Claims MiCA License Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets license is a crucial step for cryptocurrency trading platforms to operate in Europe, but it is not enough to guarantee profitability, says Ben Zhou, CEO of Bybit. In an interview, Zhou emphasized that the MiCA license has limitations, as it does not cover a wide range of products such as derivatives and tokenized assets, which are essential for generating revenue. To overcome these limitations, companies need to obtain additional licenses, including a MiFID II license and an Electronic Money Institution license. Zhou noted that even with a MiCA license, companies can only facilitate fiat-to-crypto and crypto-to-crypto transactions, which is not enough to sustain a profitable business. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still far from breaking even in Europe and is reliant on its size to absorb the costs. Zhou estimated that it may take around two years for the company to become profitable in the region, depending on when it acquires the necessary licenses. The CEO also predicted that the crypto industry in Europe is on the verge of consolidation, with smaller companies likely to shut down due to the high costs of compliance and the need for multiple licenses. The MiCA license is currently undergoing changes, with some regulators pushing for stricter control and increased oversight. Zhou expressed neutrality regarding the potential involvement of the European Securities and Markets Authority in the regulatory process, citing both potential benefits and drawbacks.