Bitpanda CEO: MiCA has boosted trust in regulated crypto platforms across Europe

European users trust regulated crypto platforms more under MiCA

European crypto users have more trust in regulated platforms since the EU's Markets in Crypto-Assets framework (MiCA) took effect, according to Christian Trummer, co-CEO of Bitpanda. Speaking on Cointelegraph's Chain Reaction podcast, Trummer said most users now place "more faith" in licensed market participants after MiCA's rollout. He contrasted this trend with what he called a "Crypto Twitter" bubble that pushes self-custody — the practice of managing your own private keys rather than leaving crypto on an exchange. He said most everyday users still prefer regulated providers over holding their own assets.

Trummer calls for tighter MiCA enforcement

Trummer also criticized the current enforcement of the rules, saying some companies continue serving European customers without a MiCA license. "The problem there definitely is that it's not strictly enforced by the regulators, because there are still other players on the market which offer the service to European customers and they don't comply to the MiCA license," he said. He argued that this gives noncompliant firms an unfair advantage over regulated companies like Bitpanda.

Regulators warn about unauthorized firms

The European Securities and Markets Authority (ESMA) said the grandfathering period for existing crypto service providers ended no later than July 1. During that transition, firms were allowed to continue operating while applying for full MiCA licenses. ESMA has told national regulators to take action against firms that kept offering crypto services after their transition window closed. The agency has also called for stronger supervisory powers to crack down on unauthorized crypto services and third-country firms targeting EU investors without proper authorization.

Why this matters for crypto investors

MiCA is the EU's first comprehensive set of rules for crypto firms. It requires companies that handle customer crypto assets to obtain a license, follow capital and custody standards, and provide clearer disclosures. For retail investors, the rules are designed to reduce the risk of losses from fraud, insolvency, or poor security — problems that have plagued unregulated exchanges in the past. Trummer's comments suggest that, at least among mainstream users, regulation is building confidence rather than pushing people toward self-custody.

What is still unclear

It remains uncertain how effectively national regulators will enforce MiCA against noncompliant firms. ESMA has asked for stronger powers, but no timeline has been announced for any regulatory changes.

Sources

• Cointelegraph

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