The mass fallout of roughly 83% of European crypto firms failing to meet the Markets in Crypto-Assets (MiCA) guidelines isn't due to a single policy. Rather, it is caused by a massive "institutionalization" shockwave.

​Before MiCA, many platforms operated globally or out of lenient tax havens, using basic anti-money laundering (AML) checks. MiCA forces these firms to transform overnight into highly regulated entities that mirror traditional investment banks (under frameworks like MiFID II). The specific internal asset controls and operational requirements breaking these business models can be categorized into four primary barriers