[MiCA Implementation Ushers in a 'Major Reshuffle' for Europe's Crypto Industry: High Regulatory Barriers May Trigger a New Wave of M&A] Odaily Planet Daily News – The European Union's Markets in Crypto-Assets Regulation (MiCA) is nearing the end of its adoption phase, but the real challenges for companies are just beginning. The high costs of maintaining compliance systems could reshape the landscape of the European crypto industry. In the future, the focus of industry competition may shift from 'who can obtain a license' to 'who can afford regulatory costs,' driving companies to pursue scaling through mergers, joint ventures, or partnerships with banks. As MiCA gradually takes effect and the UK’s crypto regulatory framework begins to take shape, the European crypto industry is entering a new phase of consolidation. Industry insiders believe that high regulatory standards may spur a new wave of mergers and acquisitions, while collaborations between crypto-native companies and traditional financial institutions are expected to deepen further. This trend may be even more pronounced in the UK. The UK’s Financial Conduct Authority (FCA) is currently drafting a new regulatory framework for crypto assets, which is expected to integrate crypto businesses into the existing financial services regulatory system. This would subject them to requirements similar to those faced by traditional investment institutions, including capital, operational, and client asset protection standards. Steven Lightstone, a partner at Morgan Lewis’s London office and co-head of the global fintech team, stated that while the FCA aims to foster market competition and support new entrants, its regulatory standards will be very stringent when it comes to consumer protection. Unlike the EU’s standalone MiCA framework, the UK’s approach will directly leverage its existing financial regulatory system to oversee crypto companies. At the same time, the increased regulatory clarity is accelerating European banks’ entry into the digital asset space. Simon Schneider, CEO of Sygnum Europe, noted that currently, less than 20% of European banks offer crypto-related services, leaving a significant market gap. The greatest value of MiCA lies not just in creating a new licensing system but in providing legal certainty for financial institutions to enter the digital asset market. Using Switzerland as an example, Schneider pointed out that after the introduction of distributed ledger technology regulations, most major Swiss banks began offering digital asset services. Other regions in Europe may follow a similar path in the future. Banks may not necessarily replace crypto-native companies but are more likely to rely on specialized infrastructure service providers to collaborate in areas such as custody, brokerage, staking, and asset tokenization. As companies that fail to obtain MiCA licenses gradually exit the European market, assets may become increasingly concentrated within regulated institutions. However, Schneider believes that self-custody models and institutional custody models will continue to coexist in the long term. Industry experts suggest that the European crypto industry is entering a 'regulation-driven consolidation cycle.' For crypto startups that have previously thrived on rapid innovation and asset-light models, their future core competitiveness may no longer be just technological speed but also compliance capabilities, capital scale, and financial infrastructure integration capabilities. (CoinDesk)