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MiCA and the U.K. crypto framework may drive an EU M&A wave
Europe’s MiCA rules and the U.K. FCA’s proposed approach could increase long-term compliance costs for smaller crypto firms, favoring deals with banks.
CoinDesk reports that Europe’s MiCA regime is moving from licensing into a phase focused on whether smaller crypto firms can sustain the costs of ongoing, comprehensive compliance. Lawyers cited by the outlet say the U.K.’s proposed crypto framework could be similarly demanding by integrating crypto activity into existing financial services regulation rather than creating a separate standalone regime.
The report says the shift could reshape ownership in the industry as firms facing higher regulatory operating costs look to mergers, acquisitions, and collaborations. It also points to banks, which already have compliance infrastructure, as likely beneficiaries through acquisitions, partnerships, and institutional crypto offerings.
According to CoinDesk, while the race for MiCA licenses may be winding down, the next competitive chapter may be defined less by getting permission and more by consolidation and integration with established financial institutions. The outlet adds that the FCA’s proposals are expected to impose standards comparable to MiCA by weaving crypto activities into Britain’s existing regulatory architecture, including prudential, operational, and client asset requirements.