The European cryptocurrency market has overtaken the race to secure a market license in crypto assets.
summary
- The MiCA transition phase ended on July 1, allowing unlicensed companies to exit, sell or transfer European clients.
- UK crypto companies face Financial Conduct Authority (FCA) licensing, prudential controls, governance rules and client asset guarantees from 2027.
- Banks already have compliance systems and networks in place, making partnerships or acquisitions cheaper than greenfield construction.
The next test is whether licensed companies can afford the staff, capital and controls necessary to continue operating under the full EU rulebook.
Cost pressure may push smaller cryptocurrency companies toward mergers, sales, or banking partnerships. The same pattern could develop in the United Kingdom, where… Financial Conduct Authority Its licensing portal will open on September 30, 2026.
MiCA moves Europe from licensing to compliance in the long term
The transition of MiCA across the EU ended on 1 July 2026 European Securities and Markets Authority He said any company serving EU customers without authorization should stop covering crypto services. Unlicensed companies must implement liquidation plans and help clients move assets to an authorized provider or self-hosted wallet.
The license gives the cryptoasset service provider access to MiCA’s passport system, but also imposes ongoing duties. Companies must maintain governance, capital, market conduct, complaint handling, cybersecurity and anti-money laundering systems. These fixed costs impact smaller exchanges, brokers and custodians more.
It is worth noting that more than 3,000 cryptocurrency companies registered under previous national regulations, while only 194 companies obtained MiCA. consent By May. The ESMA register subsequently reached around 300 approved service providers following deadline approvals around July.
UK rules could raise the cost of remaining independent
The UK has chosen to place cryptocurrencies within the existing financial services framework rather than building a separate MiCA-style system. Trading platforms, custodians, brokers, stablecoin issuers and companies arranging staking will need a licence, the FCA said. Orders will run from September 30, 2026 to February 28, 2027, before the system goes live on October 25, 2027.
The FCA maintains “very high standards” when it comes to consumers, Stephen Lightstone, a partner at Morgan Lewis, told CoinDesk. He said the cryptocurrency company “will be treated like any normal traditional financial institution.” Banks already operate many of the required governance, reporting and financial crimes systems.
Financial Supervision Authority Final encryption rules Also expand client asset protection to include crypto custody. Its CASS 17 framework covers the safeguarding duties of approved guardians. Building key management, settlements, separations and recovery procedures from scratch may cost more than joining a structured group.
Big banks and companies are gaining ground in cryptocurrencies
Banks can use acquisitions to acquire technology, licenses and specialized teams without building each service internally. Cryptocurrency companies can access capital, compliance staff, distribution, and customer relations. Partnerships may offer a middle way when neither party wants a complete takeover.
Recent European activity shows both patterns. France Cassis It was closing in on a deal for MiCA-licensed cryptocurrency platform Meria. Portugal’s Bison Bank has become a MiCA authorized provider after merging its digital assets subsidiary. SpainSicabank It also launched a regulated cryptocurrency custody service for financial institutions.
A group of European banks was selected Fire blocks to support the MiCA-compliant euro stablecoin, while Qivalis has expanded its consortium to include 37 financial institutions in 15 countries.
Simon Schneider, CEO of Sygnum Europe, told CoinDesk that less than 20% of European banks offer cryptocurrency services. Bank executives expect regulatory certainty to move more client assets toward licensed institutions. Banks already have customer networks and compliance frameworks, creating scope for partnerships in custody, brokerage, storage and tokenization.
Scale may become Europe’s next competitive advantage
The BCG and FT Partners report found that the value of fintech M&A rose from $105 billion in 2023 to $251 billion in 2025. Large-scale fintech companies completed 659 acquisitions in 2025, compared to 589 by banks and other established institutions. Digital assets and compliance are ranked among the areas attracting buyers.
MiCA may add another reason to pursue deals. The buyer can spread compliance costs across a larger customer base, while the acquiring company can avoid maintaining duplicate licenses and systems. Regulators will continue to review ownership, governance, outsourcing and customer protection after any transaction.
The merger does not mean that banks will replace all original crypto companies. Specialized providers still offer technology and market knowledge that many banks lack. Self-custodial will also remain outside the business models of regulated custodians. The likely change is fewer independent providers and more groups that combine banking distribution and cryptocurrency infrastructure.
The final form will depend on licensing decisions, operating costs, and customer migration. MiCA separates authorized service providers from companies that must leave the EU market. The Financial Conduct Authority’s 2027 regulation may apply similar pressures in Britain. Small businesses may need to raise capital, share infrastructure, sell or leave regulated markets. This would make volume more valuable than speed for companies seeking an orderly access to Europe in the long term.
