Bitpanda says MiCA boosts trust in regulated crypto platforms across Europe

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MiCA boosts crypto trust in Europe

Highlights

Bitpanda co-CEO Christian Trummer reports that MiCA has increased European users' trust in regulated crypto platforms over self-custody solutions.
Trummer urges stricter MiCA enforcement, highlighting that some firms serve European clients without meeting regulatory requirements, disadvantaging compliant platforms.
MiCA's grandfathering period for existing crypto providers ends July 1, with ESMA pushing for stronger powers to act against unauthorized services and ensure regulatory compliance.

MiCA rollout reshapes user preferences

As reported by Cointelegraph, Bitpanda co-CEO Christian Trummer says European crypto users place more trust in regulated platforms following the implementation of the European Union's Markets in Crypto-Assets framework, known as MiCA.

Speaking on Cointelegraph's Chain Reaction, Trummer says most users have "more faith" in regulated market participants after the rules come into force. He contrasts that with what he describes as a "Crypto Twitter" bubble centered on self-custody, arguing that most users prefer regulated providers over managing their own private keys.

Trummer also calls for stricter enforcement of MiCA, saying some companies continue to offer services to European customers without complying with the licensing regime. He says that leaves regulated firms at a competitive disadvantage in the market.

Regulatory enforcement remains a key issue

MiCA's grandfathering period for existing crypto service providers ends no later than July 1, and the European Securities and Markets Authority, ESMA, directs national regulators to act against unauthorized firms that continue providing crypto services after their transition periods expire.

ESMA has since called for stronger supervisory powers to address unauthorized crypto services and third-country firms soliciting EU investors without MiCA authorization. That stance underscores how enforcement is becoming a central issue for Europe's crypto sector as regulated firms seek a more level competitive environment.

Our earlier article on the Independent Community Bankers of America’s lawsuit against the Office of the Comptroller of the Currency explained how U.S. community lenders are challenging a regulatory framework that could make it easier for crypto-focused firms to obtain national trust bank charters. We outlined the banks’ concerns that such charters may confer legitimacy on crypto businesses without the traditional safeguards and supervisory protections applied in mainstream banking.

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