Key facts
- European crypto users trust regulated platforms more after MiCA implementation.
- Most users prefer regulated providers over managing their own private keys.
- Some companies serve European customers without MiCA compliance, creating a competitive disadvantage.
- ESMA is seeking stronger supervisory powers to address unauthorized crypto services.
European crypto users are showing increased faith in regulated platforms following the implementation of the European Union’s Markets in Crypto-Assets framework (MiCA), according to Christian Trummer, co-CEO of Austria-based crypto exchange Bitpanda. Speaking on Cointelegraph’s Chain Reaction, Trummer stated that most users have "more faith" in regulated market participants and trust platforms that adhere to MiCA. He contrasted this sentiment with a perceived focus on self-custody within the "Crypto Twitter" community, suggesting that the majority of users opt for regulated providers rather than managing their own private keys. Trummer also advocated for stricter enforcement of MiCA, highlighting that some companies continue to offer services to European customers without complying with the framework, thereby creating a competitive disadvantage for regulated firms. The grandfathering period for existing crypto service providers under MiCA concluded by July 1, with ESMA instructing national regulators to take action against unauthorized firms that persisted in providing crypto services after their transition periods expired. Subsequently, ESMA has called for enhanced supervisory powers to effectively address unauthorized crypto services and third-country firms that solicit EU investors without MiCA authorization.