Bybit CEO Claims MiCA License Alone Insufficient for Profitability in Europe

Securing a Markets in Crypto Assets (MiCA) license is a crucial step for operating in Europe, but according to Bybit CEO Ben Zhou, it is not enough to guarantee profitability. In an interview, Zhou emphasized that a MiCA license only permits fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets that are necessary for generating substantial revenue. To offer these products, companies must also obtain a MiFID II license and an Electronic Money Institution (EMI) license. Even Bybit, the world's second-largest cryptocurrency exchange by trading volume, is not expected to break even in Europe for at least two years, depending on the acquisition of additional licenses. Zhou views the current MiCA framework as a long-term investment, acknowledging that smaller crypto companies may struggle to meet the regulatory requirements, leading to market consolidation. With the MiCA grandfathering period set to close at the end of June, many small to medium-sized crypto companies are facing a critical juncture, as they must obtain MiCA authorization to operate across the region by July 1. The regulatory landscape is also evolving, with some country regulators advocating for stricter control and increased oversight by bodies like the European Securities and Markets Authority (ESMA). Bybit has chosen to work with Austria's FMA, a stringent regulator, and remains neutral on the potential involvement of ESMA in the regulatory process.