Beyond MiCA Compliance: Bybit CEO Ben Zhou Reveals the Harsh Reality of Profitability in the European Market

On April 26, 2026, Bybit CEO Ben Zhou offered a sober assessment of the European crypto-asset market. He warned that despite the implementation of the long-awaited Markets in Crypto-Assets (MiCA) regulation, it alone is not enough for an exchange to remain profitable. While Bybit recently secured a MiCAR license through the Austrian Financial Market Authority (FMA), Zhou stated that it would take at least two more years to break even in the region.

Obtaining a MiCA license is just the beginning; to actually turn a profit in Europe, additional financial licenses are required.

Ben Zhou highlighted that European operating costs are higher than expected, explaining the gap between regulatory compliance and financial viability. He pointed out that while the 'passporting' rights provided by MiCA are attractive, business expansion is limited without a complex and costly licensing strategy to support it. These regulatory barriers become even more apparent when an exchange seeks to provide various financial services beyond simple crypto trading.

Securing an Austrian Foothold and Establishing Vienna Headquarters

Bybit recently obtained a MiCAR license in Austria, establishing a bridgehead for entry into the European Economic Area (EEA). Zhou described this as evidence of Bybit's 'compliance-first' approach and selected Vienna as the European headquarters. This regulatory achievement is interpreted as a key step for Bybit to overcome past uncertainties and establish itself as a regulated exchange within Europe.

• February 2025: Removed from the French Financial Markets Authority (AMF) blacklist, opening the path for legal operations.
• June 2025: Achieved MiCAR compliance status, marking a major milestone in European market expansion.
• April 2026: Granted a license by the Austrian FMA and established European headquarters in Vienna.
• Introduction of institutional-grade surveillance tools: Adopted Nasdaq's market surveillance platform to meet regulatory requirements.

Zhou argued that MiCA is not a 'silver bullet' that solves all problems. To provide specific payment services or localized financial products, additional licenses beyond MiCA are necessary, which is a prerequisite for competing with traditional finance or established local players. He made it clear that a single license is insufficient to meet the diverse customer needs and detailed regulatory rules across Europe.

The regulatory environment within the European Union is currently very competitive. As of July 2025, more than 50 companies have already secured MiCA licenses, gradually diluting the first-mover advantage. Consequently, major exchanges, including Bybit, are struggling to find differentiated revenue models beyond simple compliance, leading to a war for additional licenses.

Regulatory compliance involves more than just obtaining legal status; it entails massive operating costs. As seen in Bybit's adoption of Nasdaq's market surveillance platform, maintaining top-tier technical infrastructure is essential to satisfy European regulators. This cost burden acts as a high barrier to entry for small and medium-sized exchanges, accelerating market consolidation.

Future Outlook: A Two-Year Struggle for Survival

Ben Zhou predicted that the next two years will be a critical period determining success or failure in the European market. With break-even expected only around 2028, companies with abundant capital and multi-layered licensing strategies are most likely to survive. This suggests that thorough localization and regulatory optimization must accompany expansion, rather than simple growth.

In conclusion, Bybit's case illustrates the new reality faced by crypto-asset companies in the MiCA era. Crossing the regulatory threshold and building a sustainable business are separate challenges, and the European market has now moved past the regulatory adaptation phase into a full-scale profitability verification stage. A key point for the market to watch is what additional licenses Bybit will use to diversify its revenue structure.