It’s been over six months since the EU’s Markets in Crypto-Assets (MiCA) regulation fully came into play. As the first major attempt to put governance around the crypto industry, it wasn’t a shock when the criticism rolled in. But while MiCA is facing its fair share of teething problems, in my view, it might actually open a door for the UK to strengthen its position in the crypto space.
Where MiCA is struggling
How do you regulate a sector that’s never been regulated before? That’s the problem the EU faced with MICA. Its answer was to work with the known quantity of traditional finance, and refine it. It’s a logical starting point. But in practice, it doesn’t really work. Unlike traditional finance, crypto is fast-moving, constantly evolving, and innovative. The slow, stolid regulatory system of banking and conventional investment simply doesn’t fit. But while there have been a whole range of complaints levelled against MiCA, for me, the problems come down to four main areas.
Hidden costs and slowing innovation
Innovation is at crypto’s core. It started from a point of otherness, and it’s continued to deliver that, with blockchain, decentralised finance, and tokenised assets. Startups have driven much of this innovation. Now, the cost of compliance in the EU is putting a serious hold on that.
According to crypto-focused lawyer, Ilja Nikiforov, it can cost smaller companies upwards of €60,000 just to meet MiCA’s requirements. And that’s before they even start operating. Make a mistake, and you’re looking at penalties as high as €5 million. Unsurprisingly, many startups have begun moving away from the EU altogether, taking their ideas with them.
As for the bigger companies that can afford the risk? Most are passing the costs on to customers, pushing users to look for cheaper, more welcoming markets.
The stablecoin omission
On top of that, MiCA has been criticised for overlooking one of crypto’s most precarious areas: stablecoins. BitBo estimates that there’s around $150 billion worth of stablecoins circulating globally. A major failure could impact not just the crypto world, but traditional finance too. And yet MiCA doesn’t touch it.
Futureproofing failures
Then there’s the issue of future innovation. The EU may be stuck right now, but the rest of the world continues to push on. In my view, MiCA isn’t equipped to handle the potential for bad actors to exploit the loopholes that are likely to emerge in other territories.
All up, it’s not a great scenario for the EU. But for the UK, this could be an incredible opportunity to take a more proactive role in the crypto space.
How MiCA could change the game for the UK
The UK isn’t a crypto leader. With only around 40 registered crypto businesses, our status is… lacking. But that could change with the right strategy. And with the EU’s MiCA problems, I can’t think of a better time for the UK to step up.
Firstly, there’s opportunity for British crypto businesses. With English as a global business language, and our proximity to Europe, we’ve got a lot to offer the EU’s disenfranchised businesses and investors. Especially with the instability of the US right now. My company is based and licensed in the UK, but we’re going through the MiCA registration process to ensure we can serve the broader EU market. With an estimated 31 million crypto users across Europe, the potential is huge. Especially at a time when the crypto investor profile is changing.
The number of crypto investors aged 55–64 using my platform grew by 361% between March 2020 and March 2025, hinting at a profitable shift for the sector. The question is, can the Financial Conduct Authority (FCA) support this growth?
The question of UK regulation
The UK government is already moving towards its own crypto regulation. The FCA has suggested that new compliance standards will be in place in 2026. But this doesn’t have to be a bad thing.
I’m in favour of regulation, of making the crypto space safer for everyone. And the UK has the opportunity to get it right. With the chance to learn from MiCA, to take the best bits, avoid the worst, we can strike a balance between protecting investors and giving businesses room to innovate. Preserving the ethos of the space, while making it more legitimate and accessible for all. And in the process, the UK can secure a stronger position on the global crypto stage.
The crypto space is crying out for change. To grow, it needs a broader customer base and greater accessibility. Regulation is the only way that is going to happen. But it has to be done properly. So, I’d advise the FCA to study MiCA, and find out exactly what not to do.
By Peter Curk
Peter Curk is the CEO of ICONOMI, a leading platform in digital asset management. With a background in finance and blockchain, Peter is passionate about making crypto investing accessible and easy for everyone. Under his leadership, ICONOMI has grown into a trusted name in the industry, offering innovative solutions for individuals and institutions alike.
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