Bybit CEO Ben Zhou has highlighted significant challenges for cryptocurrency firms operating in Europe, stating that merely obtaining a Markets in Crypto Assets (MiCA) license is insufficient for profitability. In an interview, Zhou emphasized that companies also need MiFID II and Electronic Money Institution (EMI) licenses to offer essential products like derivatives. This regulatory gap means that even a major player like Bybit is at least two years away from breaking even in the European market.
The impending end of the MiCA grandfathering period in two months raises concerns about consolidation in the European crypto sector. Smaller firms may struggle to survive without the necessary licenses, leading to an expected shakeout in the industry. Zhou noted that while Bybit is committed to its long-term investment in compliance and regulation, many smaller entities are reconsidering their viability under the current framework.
For market professionals, the key takeaway is the urgent need for comprehensive licensing strategies in Europe. Firms must prepare for a more competitive landscape where only those with the right mix of licenses will thrive, making regulatory compliance a critical focus for sustainable growth in the region.
Source: coindesk.com