European crypto users have ‘more faith’ in regulated firms under MiCA: Bitpanda co-CEO

Speaking during an appearance on Cointelegraph’s Chain Reaction podcast, Trummer shared insights into how the sweeping regulatory landscape is fundamentally reshaping consumer behavior across the continent. He noted that the vast majority of European retail and institutional participants now harbor significantly more faith in regulated market participants, placing a high degree of trust in platforms that operate transparently within the boundaries established by the bloc’s latest legislative measures.

The Bitpanda executive drew a sharp distinction between everyday market participants and the vocal communities found across social media platforms. He contrasted the mainstream consumer preference with what he described as a localized “Crypto Twitter” bubble—a distinct online ecosystem heavily focused on decentralized ideals and self-custody. According to Trummer, while self-custody remains a cornerstone philosophy for a dedicated subset of digital asset enthusiasts, the average consumer overwhelmingly prefers utilizing regulated providers rather than taking on the technical responsibility of managing their own private keys.

This shift in consumer sentiment coincides with a critical juncture for the European digital asset industry. The introduction of MiCA has brought unprecedented clarity to a market that was previously governed by a fragmented patchwork of national regulations. However, while the regulatory framework has successfully elevated trust among compliant platforms, it has also brought operational challenges to the forefront of the industry, particularly concerning the enforcement of these new rules across all market participants.

Trummer used the interview to sound an alarm regarding uneven enforcement, warning that some companies continue to service European customers without holding the necessary regulatory permissions. He pointed out that this lack of rigorous oversight creates an uneven playing field, placing compliant firms that have invested heavily in meeting MiCA’s stringent requirements at a distinct competitive disadvantage against non-compliant entities.

The problem, as Trummer highlighted, stems from regulatory bodies failing to uniformly crack down on offshore or non-adherent players who continue to solicit business from EU residents. Under the timeline established by European regulators, the grandfathering period for existing crypto-asset service providers to transition into full compliance ended no later than July 1. Following this deadline, the European Securities and Markets Authority directed national competent authorities to take decisive action against unauthorized firms that continued to provide digital asset services without securing the appropriate licensing.

In response to ongoing loopholes and cross-border regulatory arbitrage, ESMA has actively called for expanded supervisory powers. The European watchdog has emphasized the pressing need to address unauthorized crypto services and third-country firms that attempt to bypass local laws by soliciting European Union investors without explicit MiCA authorization. These regulatory gaps remain a primary concern for legitimate market operators who have restructured their compliance departments, security protocols, and operational frameworks to align with the European Union’s vision for a safer and more transparent digital financial ecosystem.

As the European crypto market continues to adapt to the post-MiCA era, industry leaders like Trummer argue that the long-term success of the sector will rely heavily on the willingness of regulators to protect compliant businesses from unfair competition. While retail confidence in regulated exchanges has clearly strengthened, the enforcement mechanisms must catch up with the legislative ambitions to ensure a truly level playing field across the continent.