The European Union’s recently adopted Markets in Crypto Assets (MiCA) regulations are beginning to reshape the region’s digital asset industry, creating new opportunities and barriers for companies seeking to operate across the bloc, a Switzerland-based crypto wealth platform said.
Swissborg, which has one million registered users and $1.3 billion in assets under management (AUM), is among companies betting the move will strengthen Europe’s role in regulated digital asset markets after obtaining its MiCA license.
“The economics of cryptocurrency brokerage can be challenging during softer market cycles, and some global platforms may reevaluate where they allocate capital and operational resources,” SwissBorg COO Jeremy Baumann told CoinDesk.
Over time, that could lead to “a market composed of fewer but more resilient players. MiCA raises the regulatory and operational standards needed to serve European customers, which may reduce the number of loosely structured players,” he said, referring to Gemini’s recent exit from the EU.
Baumann also said that when global exchanges reduce their presence in the EU, “space opens up for other European actors to strengthen their positioning.”
SwissBorg suffered an exploit that it said affected less than 1% of its users in September 2025. It reported that 192,600 SOL ($41.5 million) was stolen from an external wallet used exclusively for its SOL Earn strategy. The exploit emerged from a partner’s compromised application programming interface (API) and not from a hack of the SwissBorg platform, they said.
The evolution of performance and betting.
Baumann said he expects performance and engagement products to evolve toward clearer disclosures, stronger risk management and more standardized structures.
“The framework around stablecoins is more detailed and will shape how certain performance models are designed and distributed,” said Baumann, whose mid-tier exchange currently has approximately $800 million in total value locked (TVL), according to data from Defilama.
Baumann also said that regulatory clarity could gradually support greater institutional participation, adding that for now the European digital asset market remains largely driven by retail trading.
“Traditional financial institutions can play all three roles,” Baumann said. “They have strong distribution capabilities and regulatory experience, which naturally makes them competitors in some areas, but there are also opportunities for partnerships.”
EU regulators seek clear rules for stablecoins
Baumann also noted the ongoing political debates over stablecoins and performance products. While much of that discussion is currently focused on the United States, European regulators are primarily focusing on defining clear rules around issuance, reserves and distribution.
“As the market matures, performance solutions are likely to evolve toward more transparent and better-structured models that balance innovation with financial stability,” he said.
SwissBorg sought authorization in France, a country widely considered to be one of the strictest regulatory jurisdictions in Europe. The approval validates the company’s internal controls, risk management systems and safeguards of user assets, according to the firm.
The company plans to migrate its European operations from its current Estonian entity to the newly authorized French Crypto Asset Service Provider (CASP) entity in the coming months once operational readiness is confirmed, initially targeting major cryptocurrency markets including Germany, the Netherlands, Italy and Spain.
