European cryptocurrency users are demonstrating increased trust in regulated platforms following the rollout of the European Union’s Markets in Crypto-Assets (MiCA) framework, according to Christian Trummer, co-CEO of Austria-based exchange Bitpanda.
Speaking on Cointelegraph’s Chain Reaction, Trummer stated that the majority of users now have "more faith" in regulated market participants. He contrasted this trend with the "Crypto Twitter" focus on self-custody, noting that most everyday users prefer relying on regulated providers rather than managing their own private keys.
Despite the positive impact on retail confidence, Trummer raised concerns regarding enforcement. He pointed out that some companies continue offering services to European customers without holding a MiCA license, placing compliant firms at a competitive disadvantage.
"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," Trummer said.
The grandfathering period for existing crypto service providers concluded no later than July 1. Following this deadline, the European Securities and Markets Authority (ESMA) directed national regulators to take action against unauthorized firms continuing to operate past their applicable transition periods. ESMA has subsequently urged authorities to grant stronger supervisory powers to effectively handle unauthorized crypto services and third-country entities soliciting EU investors without proper MiCA authorization.
