Bybit CEO Ben Zhou warns that obtaining a MiCA license is insufficient for European profitability, as firms also require MiFID and EMI authorizations to offer essential, high-margin financial products.

Key Points

• Bybit expects to reach profitability in the European market within two years despite currently operating under the MiCA framework.
• MiCA licenses only permit basic fiat-to-crypto and crypto-to-crypto services, excluding profitable derivatives and tokenized assets.
• The European crypto industry faces significant consolidation as the MiCA grandfathering period concludes on July 1.
• Companies must secure additional MiFID II and Electronic Money Institution (EMI) licenses to offer a full suite of financial services.
• Bybit chose to register with Austria’s Financial Market Authority (FMA) to ensure a stringent regulatory foundation for long-term operations.

Why it Matters

The requirement for multiple, complex licenses highlights the high barrier to entry for cryptocurrency exchanges seeking to operate profitably within the European Economic Area. This regulatory landscape is expected to trigger a wave of market consolidation, favoring large, well-capitalized firms while potentially forcing smaller competitors to exit the region.