Bybit CEO Warns MiCA License Alone Insufficient for European Profitability

Ben Zhou, CEO of Bybit, has cautioned that obtaining a Markets in Crypto Assets (MiCA) license is a necessary but insufficient step for cryptocurrency exchanges seeking profitability in Europe. According to Zhou, the current framework limits firms primarily to basic fiat-to-crypto and crypto-to-crypto transactions, excluding the high-margin products required for a sustainable business model. To unlock profitability, Zhou asserts that firms must secure additional authorizations, specifically the Markets in Financial Instruments Directive (MiFID II) for derivatives and tokenized assets, as well as Electronic Money Institution (EMI) licenses. While Bybit is currently operating under MiCA, the exchange has yet to break even in the region, with Zhou estimating a two-year window before the firm reaches profitability. The urgency is heightened by the closing of the MiCA grandfathering period on June 30. Firms failing to secure authorization by July 1 will be unable to operate across the 27 EU member states and other EEA countries. Zhou predicts this deadline will serve as a 'death knell' for smaller operators who cannot afford the extensive compliance infrastructure required for multiple licenses. The regulatory landscape remains fragmented, with Bybit opting for Austria’s Financial Market Authority (FMA) to avoid the potential bureaucracy of a centralized European Securities and Markets Authority (ESMA) approach. As the industry moves toward a more regulated environment, the barrier to entry is rising, favoring large entities capable of absorbing long-term investment costs over smaller startups.