Bybit CEO: MiCA License Alone Insufficient for Profitability in Europe

Acquiring 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 Ben Zhou, CEO of Bybit, a leading cryptocurrency trading platform. In an interview, Zhou emphasized that MiCA only covers a limited range of products and services, excluding key areas such as derivatives and tokenized assets, which are essential for generating revenue. To access these markets, companies must also obtain a MiFID II license and an Electronic Money Institution (EMI) license. Zhou noted that even with a MiCA license, many businesses are restricted from engaging in profitable activities, and only those with multiple licenses, such as Kraken or Bitpanda, are currently turning a profit. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is itself still some way off from breaking even in Europe, with Zhou estimating that it may take around two years to achieve profitability, depending on when the company secures the necessary licenses. The CEO warned that the upcoming closure of the MiCA grandfathering period at the end of June will likely lead to market consolidation, as smaller crypto companies struggle to meet the regulatory requirements and invest in compliance infrastructure. Zhou also commented on the evolving regulatory landscape, with some countries advocating for stricter control and increased oversight, and noted that Bybit has chosen to work with a stringent regulator in Austria, which will ultimately pay off in the long run. Regarding the potential involvement of the European Securities and Markets Authority (ESMA) in regulating the crypto industry, Zhou expressed neutrality, highlighting both the potential benefits of a level playing field and the drawbacks of increased bureaucracy and decreased efficiency.