SwissBorg, a Swiss-based cryptocurrency asset manager, has warned that stricter enforcement of the European Union's Markets in Crypto-Assets Regulation (MiCA) could force smaller firms to exit the bloc and consolidate the industry around larger players with greater compliance resources.
The asset manager's assessment reflects growing concerns among market participants that MiCA's regulatory framework, while intended to standardize oversight across the EU's 27 member states, may inadvertently create barriers to entry for mid-sized and emerging crypto businesses. The stringent capital requirements, operational standards, and licensing procedures outlined in the regulation disproportionately affect smaller operators lacking the financial and legal infrastructure of established institutions.
SwissBorg's position underscores a broader tension in European crypto regulation: policymakers aim to protect consumers and prevent financial crime, yet overly prescriptive rules risk fragmenting the continent's competitive advantage against larger crypto hubs in Asia and North America. Several industry groups have called for regulatory flexibility during MiCA's implementation phase to allow businesses time to adapt without facing immediate penalties.