Europe’s cryptocurrency industry faces a wave of consolidation as the cost of complying with the Markets in Crypto-Assets (MiCA) framework begins to bite. The transition period for MiCA ended on July 1, 2026, meaning any firm serving EU clients without a licence must cease regulated crypto activities. Unlicensed companies now have to wind down operations and help customers move assets to authorised providers or self-hosted wallets.
Obtaining a MiCA licence grants passporting rights across the bloc, but it also brings ongoing obligations. Crypto-asset service providers must maintain governance, capital, market conduct, complaint handling, cybersecurity and anti-money laundering systems. These fixed costs weigh especially heavily on smaller exchanges, brokers and custodians. By May, only 194 of the more than 3,000 firms previously registered under national systems had secured MiCA approval; that number later climbed to around 300 around the deadline.
The pressure to raise capital, share infrastructure or leave regulated markets is mounting. The drive for scale is expected to encourage mergers, acquisitions and bank partnerships. In the UK, a similar pattern may emerge as the Financial Conduct Authority (FCA) opens its authorisation gateway on September 30, 2026. The FCA’s new regime will force trading platforms, custodians, intermediaries, stablecoin issuers and staking arrangers to seek authorisation. Applications run until February 28, 2027, ahead of a start date of October 25, 2027.
Steven Lightstone, a partner at Morgan Lewis, said the FCA would treat a crypto company “like any normal traditional financial institution.” The regulator’s CASS 17 framework extends client-asset protections to crypto custody, requiring strong key management, reconciliation and segregation procedures. Banks already have many of these systems, making acquisitions or partnerships a cheaper route into crypto than building from scratch.
Banks can use deals to gain technology, licences and specialist teams, while crypto firms can benefit from capital, compliance staff, distribution and customer relationships. Recent examples include France’s CACEIS nearing a deal for MiCA-licensed platform Meria, Portugal’s Bison Bank securing MiCA authorisation after integrating its digital-asset subsidiary, and Spain’s Cecabank launching regulated crypto custody for institutions. A group of European banks also selected Fireblocks for a planned MiCA-compliant euro stablecoin, while the Qivalis consortium expanded to 37 financial institutions across 15 countries.
Simon Schneider, CEO of Sygnum Europe, noted that fewer than 20% of European banks currently offer crypto services, and regulatory certainty is expected to shift client assets toward licensed institutions. A BCG and FT Partners report found that fintech M&A value rose from $105 billion in 2023 to $251 billion in 2025, with scaled fintechs completing 659 acquisitions in 2025. Digital assets and compliance were among the top areas attracting buyers.
Consolidation will not erase all crypto-native firms, as specialists still supply technology and market knowledge banks lack. Self-custody will remain outside regulated custodians’ models. But the likely outcome is fewer standalone providers and more groups combining banking distribution with crypto infrastructure. For many smaller companies, securing long-term European access may now depend on scale rather than speed.
