Ben Zhou, CEO of cryptocurrency exchange Bybit, stated that obtaining a Markets in Crypto Assets (MiCA) license in Europe is insufficient for profitability. He explained that MiCA does not cover crucial products like derivatives and tokenized assets, necessitating additional licenses such as MiFID II and Electronic Money Institution (EMI).
Zhou indicated that Bybit, despite being a major exchange, is still years away from breaking even in Europe, viewing its current operations there as a long-term investment. The upcoming deadline for firms to secure MiCA authorization by July 1 is expected to lead to market consolidation, forcing smaller companies that cannot afford the multiple licenses and compliance infrastructure to cease operations.
Regarding regulatory oversight, Zhou noted that Bybit chose Austria's FMA for its stringent approach and expressed neutrality on the potential involvement of the European Securities and Markets Authority (ESMA). He suggested that while centralized oversight could create a level playing field, it might also introduce disadvantages such as increased bureaucracy and decreased efficiency.