Bybit CEO: 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 it is not enough to guarantee profitability, according to Bybit CEO Ben Zhou. The current MiCA framework has limitations, as it only covers fiat-to-crypto and crypto-to-crypto transactions, excluding other essential products like derivatives and tokenized assets. To offer these products, companies require a MiFID II license and an Electronic Money Institution (EMI) license. Even major players like Bybit, the world's second-largest cryptocurrency exchange by trading volume, are not yet profitable in Europe and are at least two years away from breaking even. The company's timeline for profitability depends on acquiring the necessary licenses. The MiCA grandfathering period is set to end in June, and firms must obtain MiCA authorization to operate across the region by July 1. This deadline is expected to lead to market consolidation, with smaller crypto companies likely to shut down due to the high compliance costs and investment required to become profitable. The regulatory landscape is also evolving, with some country regulators pushing for tighter 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 (ESMA) in regulating the crypto industry.