European crypto users are placing greater trust in regulated platforms following the implementation of the European Union's Markets in Crypto-Assets (MiCA) framework, according to Christian Trummer, co-CEO of Austria-based crypto exchange Bitpanda.

MiCA established the bloc's first unified licensing regime for crypto-asset service providers, replacing a patchwork of national rules. Adopted in 2023 and fully applicable since the end of 2024, the framework requires firms to obtain a license and meet conduct requirements to offer crypto services to customers across the EU.

Speaking on Chain Reaction, Cointelegraph's interview series, Trummer said most users have "more faith" in regulated market participants and trust those platforms following MiCA's rollout. He contrasted that sentiment with what he described as a "Crypto Twitter" bubble focused on self-custody, noting that most users prefer regulated providers rather than managing their own private keys. In his view, the push to hold one's own keys reflects a vocal online community rather than broader retail behavior.

Source: Cointelegraph on X

Trummer also called for stricter enforcement of the rules, arguing that some companies continue to serve European customers without complying with the framework, putting regulated 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.

MiCA's grandfathering period for existing crypto service providers ended no later than July 1, with the European Securities and Markets Authority (ESMA) directing national regulators to take action against unauthorized firms that continued providing crypto services after their applicable transition period. The regulator confirmed the end of the transitional periods in a statement.

ESMA has since called for stronger supervisory powers to address unauthorized crypto services and third-country firms soliciting EU investors without MiCA authorization, as part of a push to make the framework clearer, safer and ready for emerging services. The proposals were set out in a separate announcement. The concerns ESMA raised overlap with the enforcement gap Trummer described, and the open questions now are how strictly national regulators act on unauthorized firms and whether the proposed supervisory changes are adopted.

Source: Cointelegraph