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, says Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. In an interview, Zhou emphasized that MiCA does not cover the full spectrum of products required for a company to be profitable, such as derivatives and tokenized assets, which necessitate a MiFID II license and an Electronic Money Institution (EMI) license. With the current MiCA framework, companies are limited to fiat-to-crypto and crypto-to-crypto transactions, which restricts their ability to engage in other profitable business activities. 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, pending the acquisition of the necessary licenses. The CEO views this investment as a long-term strategy, acknowledging that smaller companies may struggle to afford the compliance infrastructure required to operate profitably. The impending closure of the MiCA grandfathering period is expected to lead to market consolidation, as smaller firms may be forced to shut down due to the inability to obtain the necessary licenses and comply with regulatory requirements. The regulatory landscape is evolving, with some country regulators pushing for more centralized control and increased oversight, which may impact the profitability of crypto companies in Europe.