CoinDesk
Bybit CEO Ben Zhou says holding a Markets in Crypto Assets (MiCA) license is necessary but not sufficient to run a profitable crypto business in Europe, because the framework doesn't cover derivatives or tokenized assets. Firms still need MiFID II and Electronic Money Institution authorizations to offer the product mix that actually generates revenue, Zhou said in an interview. Bybit itself, the world's second-largest crypto exchange by trading volume, is at least two years away from breaking even in Europe under its current setup.
Why it matters
The MiCA grandfathering period ends on July 1, and every crypto-asset service provider that wants to operate across the European Economic Area — all 27 EU members plus Norway, Iceland and Liechtenstein — must hold MiCA authorization by that date. Zhou framed the cut-off as a forcing function for the smaller end of the market: firms that can technically afford MiCA compliance are still staring down the prospect of also building out MiFID and EMI infrastructure, a stack of licensing costs many won't justify. "There's going to be market consolidation," Zhou said. "That's why these guys are shutting down."
Market impact
MiCA is already evolving. Some national regulators are pushing for tighter, more centralized oversight and expanded authority for the European Securities and Markets Authority (ESMA), which recently reminded firms offering perpetual futures that some structured products may fall outside the rules. Bybit deliberately chose Austria's FMA as its home regulator and says it is neutral on bringing ESMA into the mix — Zhou cited speed and access at the national level as the trade-off against a single continental supervisor. Expect Europe-listed crypto venues to keep trading through Q3 on thinner product menus, with a wave of license-driven exits among mid-tier players before the December earnings cycle.
Frequently asked questions
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Why does Bybit's CEO say a MiCA license isn't enough to be profitable in Europe?
Ben Zhou says MiCA only covers fiat-to-crypto and crypto-to-crypto products, leaving derivatives and tokenized assets outside the framework. To offer those, exchanges still need MiFID II and Electronic Money Institution authorizations.
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When does the MiCA grandfathering period end?
The MiCA grandfathering period closes on July 1. After that date, every crypto-asset service provider operating in the European Economic Area must hold MiCA authorization.
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How long until Bybit breaks even in Europe?
Zhou said Bybit is at least two years from profitability in Europe under its current MiCA-only setup. He acknowledged the timeline could stretch to five years but called two years a reasonable base case.
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What is ESMA's role in European crypto regulation?
The European Securities and Markets Authority oversees EU financial markets and is being considered for an expanded role in supervising MiCA-regulated firms. It recently reminded crypto firms that some perpetual-futures products may fall outside existing rules.
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Why did Bybit choose Austria's FMA as its home regulator?
Zhou said Bybit picked Austria's FMA because the regulator runs a stringent interpretation of MiCA, which should pay off long-term. He contrasted that with jurisdictions that interpret MiCA as a way to attract new business rather than enforce it strictly.
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