The Crypto Market Meets Regulation: A Case Study On MiCA And The Future Of CASP : How Swedish Crypto-Asset Service Providers Navigate the New Regulatory Landscape to Sustain Competitive Advantage

The rapid growth and increase of cryptocurrencies and blockchain technology has revolutionized the financial landscape. The crypto-asset market has largely operated in an unregulated environment within the European Union, which has raised concerns about risks such as financial crime, market manipulation, and lack of consumer protection. The Markets in Crypto Assets Regulation (MiCA) aims to address these issues by introducing a comprehensive regulatory framework for crypto-assets issuers and CASPs to align with. However, the implementation of the regulation may pose significant challenges for crypto-companies. These requirements may also require resource allocation, increased investments and internal process changes within CASP businesses. The primary aim of this research is to explore how CASPs can effectively prepare for compliance with the MiCA regulation and allocate resources to sustain their competitive advantage. Based on that, this research seeks to conduct a thorough analysis of the regulation to identify specific compliance obligations imposed on CASPs. By understanding these requirements, this study will examine their implications on the operational and strategic aspects of CASPs, providing a detailed overview of the regulatory landscape they must navigate. The research also intends to analyze how resource allocation within CASP operations affects their ability to achieve sustainable competitive advantages in a future regulated market. By addressing these key areas, the research aims to provide a comprehensive understanding of the regulatory challenges for CASP companies and how the legal changes will affect their business structures, strategic decisions and resource allocations.