The European Union's Markets in Crypto Assets Regulation (MiCA) is entering its final stretch, forcing smaller crypto firms to secure authorization or face regulatory consequences. The transitional period, which ends on July 1, has given companies time to adapt to the new rules.
According to industry experts, the MiCA regime may lead to a wave of consolidation across Europe's crypto market, as smaller firms struggle to comply with the regulations. The cost of authorization and ongoing reporting is a significant barrier for many companies, particularly those with limited resources.
The EU supervisors maintain that the rules are proportionate and designed to support innovation alongside stronger investor protection. However, some industry experts argue that the MiCA regime may drive smaller firms out of business or push them offshore in search of more favorable regulatory environments.