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In an interview, Ben Zhou said the crypto speech is astatine slightest 2 years distant from breaking adjacent successful Europe.
Apr 26, 2026, 1:00 p.m.
Snagging a Markets successful Crypto Assets (MiCA) licence to run successful Europe is great, but, alone, it won't beryllium capable to crook a profit, according to Ben Zhou, the CEO of Bybit, 1 of the largest cryptocurrency trading platforms.
MiCA doesn't screen the afloat scope of products, specified arsenic derivatives and tokenized assets, needed to beryllium profitable, Zhou said successful an interview. For those, companies besides request a MiFID II (Markets successful Financial Instruments Directive) licence and an Electronic Money Institution (EMI) license.
“With the existent MiCA framework, you tin lone bash fiat-to-crypto, crypto-to-crypto," Zhou said. "There are galore elements of a profitable concern you cannot do, truthful adjacent arsenic a MiCA holder — unless you're Kraken oregon BItpanda oregon Bitvivo, who are already making wealth due to the fact that they person aggregate licenses.”
Even Bybit, the world’s second-largest cryptocurrency speech by trading volume, is immoderate mode disconnected from breaking adjacent successful Europe, Zhou said. That timeline depends connected erstwhile the steadfast acquires the different licenses it needs.
“We don't marque wealth nether the existent MiCA license. But we're capable to spend it due to the fact that we're a large entity. For us, it's a semipermanent investment,” Zhou said. “It could beryllium 5 years away, but I deliberation that is simply a spot long. I would presume we are astir apt going to beryllium profitable wrong 2 years."
Market consolidation is coming
A MiCA licence issued by 1 state allows a crypto-asset work supplier to run crossed the European Economic Area (EEA): each 27 members of the European Union, arsenic good arsenic Norway, Iceland and Liechtenstein.
Now is simply a captious juncture for galore tiny to medium-sized crypto companies successful Europe, due to the fact that the MiCA grandfathering play closes astatine the extremity of June. That means firms indispensable person obtained MiCA authorization to run crossed the portion by July 1 — a cut-off constituent that is wide expected to beryllium the decease knell for galore smaller crypto firms.
“There’s going to beryllium marketplace consolidation,” Zhou said. “That's wherefore these guys are shutting down. Because adjacent if they cognize they could spend MiCA, they're like, 'WTF, I request [MiFID, EMI] to marque money, and I request to marque a full batch of concern successful compliance infrastructure to beryllium capable to beryllium profitable?’”
MiCA itself is undergoing change, with some state regulators calling for tighter, much centralized power and granting accrued oversight to bodies specified arsenic the European Securities and Markets Authority (ESMA). And erstwhile it comes to structured products, ESMA precocious reminded crypto firms offering perpetual futures that immoderate of these products whitethorn autumn extracurricular the rules.
Zhou said Bybit chose a stringent regulator successful Austria’s FMA, a determination helium said volition wage dividends down the line. Each state interprets MiCA differently, helium said: “Some countries construe it arsenic a mode to pull caller business; immoderate privation dense regulation. So you really person antithetic levels of strictness.”
As for bringing ESMA into the mix, Bybit is neutral, Zhou said.
“There are talks astir a much level playing field,” helium said. “But determination could beryllium disadvantages. Because erstwhile you person a section regulator they are casual to get to. If we person immoderate issues, we conscionable nonstop an email and spell to FMA successful Vienna. But if everyone's successful Paris, past you person to enactment up. There are much CASPs, accrued bureaucracy, decreased efficiency.”
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