Europe's Crypto M&A Wave Looms as Regulatory Costs Bite

The European Union's landmark crypto rulebook, MiCA (Markets in Crypto Assets), has entered a new phase that may reshape the industry's ownership structure. Firms now facing the ongoing cost of operating under comprehensive regulation are likely to merge or be acquired by established financial institutions.

Lawyers say the U.K.'s proposed framework could prove just as demanding as MiCA by integrating crypto firms into existing financial services regulation rather than creating a standalone regime.

Banks, already equipped with compliance infrastructure, may emerge as major beneficiaries through acquisitions and institutional crypto offerings.