Bybit CEO Says MiCA License Alone Not Enough for Profit in Europe

Bybit CEO Ben Zhou has said that obtaining a Markets in Crypto-Assets (MiCA) license alone is not enough for a crypto exchange to run a profitable business in Europe, suggesting that additional licenses and operational infrastructure are critical to commercial success on the continent.

What the Bybit CEO said about MiCA and European profitability

Zhou’s remarks, reported by News Minimalist, pointed to MiFID (Markets in Financial Instruments Directive) and EMI (Electronic Money Institution) licenses as crucial pieces of the puzzle for crypto exchanges aiming to generate revenue in Europe.

The statement draws a clear line between regulatory permission and commercial viability. A MiCA authorization allows a firm to legally offer crypto-asset services across EU member states, but Zhou indicated that this baseline approval does not address the full range of requirements needed to build a sustainable business.

This is a notable distinction coming from the head of one of the world’s largest crypto exchanges by trading volume. It signals that Bybit views European expansion as a multi-layered regulatory and operational challenge, not a single-license checkbox.

Why a MiCA license may not guarantee a profitable operation

MiCA, which established a unified regulatory framework for crypto-asset service providers across the EU, was designed to standardize market entry. But market entry and profitability are fundamentally different problems.

Compliance costs represent one major gap. Meeting MiCA’s requirements around consumer protection, reserve management, and reporting demands significant ongoing investment in legal, technical, and compliance teams.

Regulatory costs versus operating costs

Beyond compliance, exchanges face the practical challenge of building revenue-generating operations. Customer acquisition in fragmented European markets requires localization across multiple languages, payment systems, and cultural expectations.

Banking access remains a persistent obstacle. Even with a crypto license in hand, exchanges often struggle to establish and maintain relationships with European banks willing to support fiat on-ramps and off-ramps.

Product mix also matters. An exchange limited to spot trading under a basic MiCA authorization may lack the derivatives and structured products that drive higher margins, which is where additional licenses like MiFID authorization become relevant.

What exchanges may still need beyond MiCA approval

Zhou’s reference to MiFID and EMI licenses highlights a layered regulatory reality in Europe. MiCA covers crypto-specific activities, but offering investment services, payment processing, or electronic money issuance each requires separate authorizations under existing EU financial regulations.

Legal permissions versus operational readiness

A MiFID license would allow an exchange to offer regulated investment instruments, potentially including tokenized securities or crypto derivatives. An EMI license enables the issuance and management of electronic money, which is essential for handling fiat currency flows at scale.

Without these additional authorizations, an exchange operating under MiCA alone would be limited in the products it can offer and the payment infrastructure it can build. That constraint directly affects revenue potential.

There are also non-regulatory hurdles. Establishing local banking partnerships, integrating with regional payment networks like SEPA, and setting up compliant operational entities in key jurisdictions all require time and capital that a single license does not provide.

What this could mean for Bybit and the wider European exchange market

Zhou’s comments suggest a cautious approach to European expansion economics. Rather than treating MiCA as a green light for immediate profitability, Bybit appears to be planning for a more complex, multi-license strategy.

This perspective likely resonates across the exchange industry. Firms that have pursued European market access are increasingly finding that regulatory approval is just the starting line, not the finish.

The comment also raises questions about how smaller exchanges will compete. If a major player like Bybit views the European path as costly and complex, firms with fewer resources may face even steeper challenges in reaching profitability. Meanwhile, major institutional players continue to expand their crypto treasuries, as seen when Michael Saylor signaled that Strategy may buy more bitcoin, underscoring the contrast between institutional appetite and the regulatory friction exchanges face in Europe.

For the broader crypto industry, the remark aligns with a shift toward viewing regulation not as a single hurdle but as an ongoing operational cost. The operational complexity mirrors challenges across the ecosystem, where even established protocols face unexpected disruptions like the recent KelpDAO exploit that highlighted how infrastructure risks extend well beyond licensing.

FAQ: Bybit, MiCA, and crypto profitability in Europe

What is MiCA?

MiCA stands for Markets in Crypto-Assets. It is the European Union’s comprehensive regulatory framework for crypto-asset service providers, establishing licensing requirements, consumer protections, and operational standards across all EU member states.

Why would a MiCA license not guarantee profit?

A MiCA license grants legal permission to operate but does not address the costs of compliance, customer acquisition, banking relationships, payment infrastructure, or the product limitations that come without additional financial licenses like MiFID or EMI authorizations.

Does this apply only to Bybit or to other exchanges too?

Zhou’s observation reflects a structural reality of the European market, not a Bybit-specific issue. Any crypto exchange entering Europe under MiCA alone would face similar constraints on product scope, payment processing, and revenue generation.

What are MiFID and EMI licenses?

MiFID (Markets in Financial Instruments Directive) licenses authorize firms to offer investment services including derivatives and securities. EMI (Electronic Money Institution) licenses allow firms to issue and manage electronic money, enabling fiat currency handling at scale.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making any investment decisions.