How has user preference changed after MiCA?

With the MiCA framework now being implemented, it was noted that crypto users in Europe have grown more confident in regulated platforms. Austria-based Bitpanda Co-CEO Christian Trummer said a significant share of retail investors prefer to deal with service providers that operate under clear rules.

Licensed providers over self-custody

According to Trummer, the self-custody approach often highlighted on social media does not reflect the main preference of the broader user base. In the market, many people find it safer to use the custody and trading infrastructure offered by regulated companies rather than managing their own private keys.

This trend shows that MiCA is not only a technical regulatory framework, but one that also affects retail investors’ perception of trust. In the European market, licensing and oversight are becoming more visible factors in platform selection.

Non-compliant firms raised concerns over competitive balance

Christian Trummer stressed that for MiCA to be effective, the rules need to be enforced more strictly. In his view, some companies continue serving customers in Europe without complying with the framework, creating a competitive disadvantage for firms that do follow the rules.

Where is the market impact most visible?

  • Licensed platforms that bear compliance costs can come under pricing pressure and face tougher competition for customers from companies operating outside the rules.
  • Weak oversight can shape where user trust concentrates and affect how market share is distributed.

For that reason, how MiCA is enforced is being closely watched not only from the perspective of investor protection, but also for its impact on the competitive structure of Europe’s crypto market.

ESMA calls for tougher oversight after transition period ends

ESMA, the European Securities and Markets Authority, reminded market participants that the transition period granted to existing crypto service providers ended no later than 1 July. The agency said national regulators should take action against firms that continue to offer services without authorization once their own transition period has ended.

ESMA also called for stronger supervisory powers against third-country firms trying to reach European Union investors without MiCA authorization, as well as unauthorized crypto services. As a result, in the next phase of Europe’s crypto market, oversight capacity is emerging as one of the key issues alongside trust.