European crypto firms confront consolidation as MiCA spurs exits and M&A

The EU's Markets in Crypto‑Assets Regulation (MiCA) is prompting smaller crypto businesses to consider leaving the European market because of the high costs of ongoing compliance. Gate Europe CEO Keld van Schreven warned that many licence‑holders may exit or be absorbed by larger players, leading to a more concentrated sector.

Analysts say the post‑licensing environment is also encouraging a wave of mergers and acquisitions, with banks such as BNP Paribas and Deutsche Bank positioning themselves to acquire mid‑size exchanges and custodians. The UK Financial Conduct Authority is proposing to bring crypto firms under the same regulatory framework as traditional financial institutions, further raising entry barriers and favouring well‑capitalised operators. Together, these trends point toward a tighter, fewer‑players market across Europe.