MiCA compliance costs could prompt consolidation among European crypto firms after the licensing regime took effect on July 1, 2026. The EU regulation requires all service providers serving EU clients to hold a licence, and firms without authorisation must cease operations, transfer assets to a licensed entity, or wind down. As of May, 194 of more than 3,000 firms previously registered under national schemes had obtained MiCA authorisation, with the ESMA register reaching about 300 licensed providers after the July deadline. The rules mandate governance, capital, market conduct, anti‑money‑laundering, cybersecurity and client‑asset safeguards, imposing fixed costs that weigh more heavily on smaller exchanges, brokers and custodians. The United Kingdom will open its authorisation gateway on September 30, 2026, with a regime starting October 25, 2027, requiring crypto firms to meet standards similar to traditional financial institutions. Banks, which already possess many of the required systems, can acquire technology, licences or talent through partnerships or acquisitions, potentially lowering the cost of compliance for crypto firms. A BCG and FT Partners report noted a rise in fintech M&A value from $105 billion in 2023 to $251 billion in 2025, suggesting that scaled firms may find it cheaper to consolidate compliance expenses across larger customer bases. The shift could reduce the number of standalone providers and increase the value of scale, though the final structure will depend on authorisation outcomes, operating costs and customer migration.