Bybit CEO Claims 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 Bybit CEO Ben Zhou. The current MiCA framework has limitations, as it only allows for 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 Bybit, the world's second-largest cryptocurrency exchange, is not expected to break even in Europe for at least two years, pending the acquisition of necessary licenses. Zhou views this as a long-term investment, acknowledging that smaller companies may struggle to afford the costs associated with obtaining multiple licenses, leading to market consolidation. The MiCA grandfathering period is set to end, and firms must obtain authorization by July 1, which may lead to the demise of smaller crypto companies. Regulatory changes are also underway, with some countries 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, which Zhou believes will pay off in the long run. The company remains neutral regarding the potential involvement of ESMA, citing concerns about increased bureaucracy and decreased efficiency.