Crypto users in Europe have increasingly shifted their preference toward regulated trading platforms since the introduction of the European Union’s Markets in Crypto-Assets (MiCA) framework. Christian Trummer, co-CEO of Bitpanda, an Austria-based cryptocurrency exchange, indicated that the new rules have strengthened market confidence among users.
Regulation boosts confidence in crypto platforms
Trummer stated that, following the rollout of MiCA, most European crypto participants now “have more faith” in platforms operating under regulatory oversight. He argued that investors are more comfortable entrusting their funds to regulated providers rather than opting for self-custody solutions.
The executive observed a divide between mainstream users and a vocal minority active in online communities known as “Crypto Twitter.” While some community members advocate for self-management of private keys and total control over their funds, Trummer emphasized that the broader user base prefers the perceived safety and convenience of regulated exchanges.
Most users actually prefer regulated providers rather than maintaining their own private keys, despite the prevailing views in some corners of Crypto Twitter.
Bitpanda, operating in a heavily regulated jurisdiction, has positioned itself as a compliance-focused trading venue. The company, founded in Vienna, has expanded its offerings across Europe through adherence to evolving legal and regulatory frameworks.
Mini dictionary: Bitpanda, established in 2014 in Vienna, is a regulated cryptocurrency and digital asset platform offering trading and investment services primarily to European users.
Calls for stricter enforcement of MiCA
Trummer also called for more robust enforcement of MiCA rules. He pointed out that some companies continue to serve European customers without fulfilling the framework’s requirements, thereby securing a competitive edge over fully regulated firms such as Bitpanda.
MiCA’s grandfathering period, which allowed existing crypto service providers to adjust to the new regulation, concluded by July 1. The European Securities and Markets Authority (ESMA) has subsequently instructed national regulators across the EU to act against unauthorized firms offering crypto services after their transition windows expired.
Some companies are still targeting European users without MiCA authorization, putting compliant firms at a disadvantage.
In recent statements, ESMA has called for broader supervisory powers to address unauthorized crypto services and prevent non-EU firms from actively soliciting investors in the region without MiCA approval. This push aims to close regulatory gaps and ensure that all market participants operate on a level playing field.
Mini dictionary: The European Securities and Markets Authority (ESMA) is an independent EU authority responsible for safeguarding the stability of the European Union’s financial system by enhancing the protection of investors and promoting stable and orderly financial markets.
The end of the transition period
Under MiCA, all crypto service providers operating within the EU were granted a defined transition period to comply with the new requirements. After the transition expired, only entities with active MiCA authorization can legally serve customers in the region. Regulated exchanges such as Bitpanda view this as a necessary move to enhance the credibility and security of the crypto sector for European users.
| Regulatory requirement | Before MiCA | After MiCA |
|---|---|---|
| Authorized firms | Voluntary, less oversight | Mandatory MiCA authorization |
| Grandfathering period | Active | Ended by July 1 |
| Enforcement actions | Varied by country | Directed by ESMA and national regulators |
