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 does not guarantee profitability, according to Bybit CEO Ben Zhou. In an interview, Zhou emphasized that 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 overcome these limitations, companies must also obtain a MiFID II license and an Electronic Money Institution (EMI) license. Zhou noted that even with a MiCA license, companies like Bybit are restricted to offering fiat-to-crypto and crypto-to-crypto services, which are not enough to achieve profitability. The CEO estimated that Bybit is at least two years away from breaking even in Europe, depending on when the company acquires the necessary licenses. The current MiCA framework is 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 (ESMA) in the regulatory process, citing both potential advantages and disadvantages. The CEO believes that market consolidation is inevitable, particularly with the MiCA grandfathering period set to end in June, which will likely lead to the closure of many small to medium-sized crypto companies in Europe.