MiCA Is Reshaping the Crypto Market

New European Union regulations for the cryptocurrency market are beginning to have a visible impact on how the industry operates across the region. The rules, known as Markets in Crypto-Assets (MiCA), introduce stricter requirements for companies offering services related to digital assets.

According to the Swiss investment platform SwissBorg, the new framework could reduce the number of companies operating in the European crypto market in the long term. At the same time, it is expected to increase the industry’s stability and professionalism. SwissBorg currently has around one million registered users and manages approximately $1.3 billion in assets. The company recently obtained a license that complies with MiCA regulations.

SwissBorg’s Chief Operating Officer, Jeremy Baumann, notes that running a brokerage business in the cryptocurrency sector can be challenging, especially during weaker market conditions. In such periods, global platforms often scale back investments or withdraw from certain markets. As a result, the European market may consist of fewer companies, but those that remain are likely to be better prepared in terms of organization and regulatory compliance.

Baumann also emphasizes that when some global exchanges reduce their presence in the European Union, it creates an opportunity for European firms to strengthen their position in the market.

According to the SwissBorg representative, the changes may also affect products related to staking and generating yield from cryptocurrencies. In the future, such solutions are expected to provide clearer information, improved risk management, and more standardized structures. Increasingly detailed regulations for stablecoins may also influence how these products are designed.

At present, the European cryptocurrency market is still largely dominated by retail investors. However, greater regulatory clarity could gradually attract financial institutions as well. These institutions typically have experience navigating regulatory environments and possess well-developed distribution channels. In practice, they may both compete with crypto platforms and collaborate with them.

SwissBorg recently obtained regulatory approval in France, which is considered one of the more demanding jurisdictions in Europe. In the coming months, the company plans to move its European operations from Estonia to a new entity registered in France as a crypto-asset service provider. Initially, the business will focus on Europe’s largest cryptocurrency markets, including Germany, the Netherlands, Italy, and Spain.