MiCA alone won't make you profitable in Europe, Bybit CEO warns

A MiCA license is the entry ticket to Europe's crypto market, but it is far from a business model. Bybit CEO Ben Zhou says firms also need a MiFID II license to offer derivatives and an Electronic Money Institution (EMI) authorization to handle fiat products — without both, profitability is out of reach.

Even Bybit, the world's second-largest exchange by trading volume, does not break even under its current MiCA license. Zhou estimates the firm is roughly two years from profitability in the region, contingent on securing additional authorizations. "We don't make money under the current MiCA license. But we're able to afford it because we're a big entity," he said.

The pressure intensifies as the MiCA grandfathering period closes at end of June. Firms without full authorization by July 1 cannot operate across the EEA, a deadline Zhou expects will trigger significant market…