MiCA Regulation Expected to Drive Smaller Crypto Apps Toward Licensed Custody

The upcoming Markets in Crypto-Assets (MiCA) regulation in the European Union is expected to push smaller crypto applications toward licensed custody solutions, according to industry observers. The trend is exemplified by BitGo's recent acquisition of Bielik, a regulated custodian.

BitGo's deal for Bielik allows the company to offer compliant custody services that meet MiCA standards. Smaller crypto apps, which may lack the resources to build in-house compliant infrastructure, are likely to rely on such licensed custodians to ensure customer access remains uninterrupted while regulatory requirements are met.

Shifting Infrastructure

Under MiCA, custody of crypto assets will need to adhere to strict standards, including segregation of assets and capital requirements. This is expected to concentrate regulated infrastructure among a smaller number of licensed entities, with downstream apps integrating those services via APIs or white-label partnerships.

For end users, the shift should be largely invisible—they will continue to access their funds through familiar interfaces while the underlying custody is handled by regulated providers. The model mirrors trends seen in traditional finance, where brokerages use third-party clearing and custody firms.