The Opportunity MiCA Could Bring to the UK’s Crypto Space

It’s been more than six months since the EU’s Markets in Crypto-Assets (MiCA) regulation officially took effect. As the first serious attempt to impose structure on the crypto industry, it was no surprise that it drew criticism. But while MiCA is dealing with its fair share of challenges, for the UK, it might actually present an opportunity to carve out a stronger position in the crypto landscape.

Where MiCA is falling short

How do you regulate an industry that wasn’t intended for regulation? That was the EU’s dilemma with MiCA. Their approach was to adapt the existing playbook from traditional finance. It made sense as a starting point, but in practice, it falls short, because crypto simply isn’t traditional finance. It’s fast-moving, decentralised, and constantly innovating: all things notably lacking from the established financial ecosystem. Trying to shoehorn crypto into the same regulatory mould as banks and investment firms was always going to be problematic. Hence the avalanche of complaints following MiCA’s rollout. But to me, the real issues boil down to four core areas.

Concealed costs and reduced innovation

At its core, crypto is characterised by innovation. From blockchain infrastructure to decentralised finance and tokenised assets, the sector has been driven by creative ideas. And many of them have come from small startups willing to take risks. But under MiCA, that innovative edge is at risk. Under MiCA, compliance costs alone are estimated to be €60,000 or more for a small company entering the European crypto space. If they make a mistake, they risk fines as steep as €5 million or 5% of a business’ annual turnover. So, it’s hardly surprising that many startups are opting out altogether, relocating outside the EU and taking their talent and ideas with them.

Larger firms may remain, if they have the resources to comply. But an additional concern is that they’re not absorbing the associated costs. They’re passing them on to users, pushing many toward cheaper, more innovation-friendly markets elsewhere. Including the UK.

The stablecoin sidestep

And then there’s the issue of stablecoins. This is one of the areas of MiCA that has drawn the most criticism. According to BitBo, there’s an estimated $150 billion in stablecoins circulating globally. It is viewed as the riskiest and most unstable of the crypto assets. And yet MiCA doesn’t touch it. If stablecoins were to collapse, the ripple effects wouldn’t stop at crypto, they could spill into traditional financial markets too. Rendering the entire regulatory process almost useless.

Failing to futureproof

Lastly, there’s the matter of what comes next. While the EU is focused on regulating the current state of crypto, the rest of the world is already moving ahead. The general consensus is that MiCA isn’t built to adapt to the next wave of innovation. There are no contingencies in place to close the inevitably emerging loopholes, which bad actors will predictably exploit.

Taken together, these gaps leave the EU in a difficult position. But for the UK, they represent something else entirely: opportunity.

How MiCA could be a golden opportunity for the UK

The UK isn’t a leader in the crypto industry. More than 15 years in, we still only have around 40 registered crypto firms. But that could shift quickly with the right regulatory strategy. And given the criticisms levelled at MiCA, there may never be a better time for the UK to try its hand.

The UK government has already stated its intention to regulate the cryptocurrency space, with the FCA planning to introduce new compliance standards at some point in 2026. This is the ideal opportunity to get things right.

Most people – including myself – are in favour of regulation. It’s an essential move if we’re going to make the space safer, more credible, and accessible to a wider audience. And the UK is uniquely positioned to get it right. We can learn from MiCA’s missteps, adopting what works and avoiding what doesn’t, striking the balance between consumer protection and ongoing innovation. If the FCA is clever about this, it can lead the way in integrating crypto more meaningfully into the global financial system. And in the process, enhance the UK’s status in the field.

UK businesses don’t need to wait for regulation to benefit from MiCA, however. By pursuing MiCA registration, they can access the broader European market – providing a place for all of those disenfranchised European crypto investors to go. We’re not only the EU’s nearest neighbour, we’re also accessible, with English being the global business language. When you add in the growing uncertainty in the US market, the UK makes an attractive alternative for EU businesses and investors disillusioned by MiCA’s complexity.

My own company is based and licensed in the UK. We started applying for MiCA regulation months ago. Because, with an estimated 31 million crypto users across Europe, the potential for growth is too significant to ignore. Especially now, as the crypto investor demographic is evolving. Cryptocurrency is no longer a space defined by its youthful users. The number of crypto investors aged 55–64 using my platform grew by 361% between 2020 and 2025. Signalling that crypto is becoming a more mainstream financial asset. These users tend to be more active and to invest larger sums. If UK companies really want to thrive, they need to be prepared to serve more mature investors and to open their doors to the EU’s crypto customers.

The cryptocurrency industry is ready for change. It needs a broader customer base, more legitimacy, and better access. Businesses can play their parts. But regulation is a central step towards achieving that. It needs to be done thoughtfully, though. So, the FCA must be ready to learn lessons from MiCA.

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.