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. In an interview, Zhou emphasized that the MiCA license has limitations, as it does not cover the full range of products necessary for a company to be profitable, such as derivatives and tokenized assets. To offer these products, companies need to obtain a MiFID II license and an Electronic Money Institution (EMI) license. Zhou noted that even with a MiCA license, companies can only engage in fiat-to-crypto and crypto-to-crypto transactions, which is not enough to sustain a profitable business. Bybit, the world's second-largest cryptocurrency exchange by trading volume, is still at least two years away from breaking even in Europe, according to Zhou. The company's timeline for profitability depends on when it acquires the necessary licenses. Zhou stated that the current MiCA framework is insufficient for companies to turn a profit, and that market consolidation is inevitable, especially with the upcoming deadline for the MiCA grandfathering period. The CEO believes that smaller crypto companies will struggle to survive due to the need for additional licenses and compliance infrastructure. Zhou also discussed the potential changes to the MiCA regulations, with some country regulators pushing for stricter control and increased oversight. Bybit has chosen to work with the Austrian regulator, FMA, 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 the regulatory process.