Bitpanda’s co-CEO says European crypto users now trust regulated firms more than they used to, and he points to MiCA as the reason.
The co-CEO told Cointelegraph that the region’s customers now place greater faith in companies that hold a MiCA license. He also pushed for tighter enforcement of the law, arguing that some firms keep serving European clients without following its rules, giving compliant rivals a price disadvantage.
The grandfathering window closed
MiCA’s grace period for existing crypto service providers ended no later than July 1. ESMA directed national regulators to take action against firms that kept providing crypto services after their applicable transition period.
That deadline meant firms without a license could no longer treat Europe as a safe space.
What MiCA covers
MiCA stands for Markets in Crypto-Assets Regulation. It applies to crypto asset service providers operating within the European Union.
Enforcement problems
The co-CEO’s complaint rests on a simple observation: some firms are still offering crypto services to Europeans without a MiCA license. He says regulators are not acting consistently enough to stop them.
The competitive disadvantage
The co-CEO describes a situation where regulated firms face a competitive disadvantage because some rivals serve European customers without complying with MiCA.
ESMA’s push for more power
ESMA has since asked for stronger supervisory powers to deal with unauthorized crypto services and third-country firms soliciting EU investors without MiCA authorization.
The co-CEO’s position
The co-CEO’s position is clear: trust has shifted, and enforcement needs to catch up.
Key dates
- The grandfathering period for existing crypto service providers ended no later than July 1.
- ESMA directed national regulators to take action against firms that kept providing crypto services after their applicable transition period.
- ESMA has since called for stronger supervisory powers to address unauthorized crypto services and third-country firms soliciting EU investors without MiCA authorization.
“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.”
The gap between claim and proof
The co-CEO offers no evidence that unlicensed firms are actually undercutting compliant rivals. His argument is that the potential exists because enforcement is not strict enough.
The gap between claim and proof is the story’s weakest point. Whether it holds depends on enforcement catching up.
Source material: “European crypto users have ‘more faith’ in regulated firms under MiCA: Bitpanda co-CEO,” Cointelegraph.
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