The EU’s new Markets in Crypto Assets (MiCA) rules are already reshaping the regional crypto landscape — and could leave a leaner, more regulated industry in their wake, according to Swiss crypto-wealth manager SwissBorg.
SwissBorg, which manages roughly $1.3 billion in assets and counts about one million registered users, recently secured MiCA authorization and says the framework will raise the bar for anyone serving European clients. “MiCA raises the regulatory and operational standards required to serve European clients, which may reduce the number of lightly structured players,” SwissBorg COO Jeremy Baumann told CoinDesk, arguing that tougher rules could push some global platforms to reallocate capital and scale back EU operations. That retrenchment, he said, “opens space up for other European players to strengthen their positioning.”
The company’s comments come amid broader industry shifts — including high-profile exits from the EU by some global exchanges — and reflect a belief that the long-term effect will be fewer but more resilient market participants as compliance and operational costs rise.
Security and product evolution
SwissBorg also addressed a security incident in September 2025 that affected fewer than 1% of its users. The firm reported 192,600 SOL (about $41.5 million) was stolen from an external wallet used for its SOL Earn strategy. SwissBorg said the loss stemmed from a partner’s compromised API rather than a breach of its own platform.
Looking ahead, Baumann expects yield and staking offerings to undergo a compliance-driven transformation: clearer disclosures, stronger risk management and more standardized structures. He highlighted stablecoin rules under MiCA as particularly consequential, saying “the framework around stablecoins is more detailed and will shape how certain yield models are designed and distributed.” SwissBorg currently shows roughly $800 million in total value locked (TVL), per DeFiLlama data.
Institutional interest and partnerships
Regulatory clarity, Baumann suggested, could eventually draw more institutional players into European crypto markets — though today the market remains largely retail-focused. He noted that traditional financial institutions can “play all three roles” — as distributors, custodians and competitors — creating both head-to-head competition and partnership opportunities with crypto-native firms.
Policy debates around stablecoins and yield products continue on both sides of the Atlantic: while much attention is concentrated in the U.S., European regulators are zeroing in on rules for issuance, reserves and distribution that will influence product design and market structure.
French authorization and EU expansion plans
SwissBorg sought and won authorization in France, a jurisdiction seen as among the stricter EU regulators. The approval, the company says, validates its internal controls, risk management systems and asset safeguards. SwissBorg plans to migrate its European operations from its current Estonian entity to the newly authorized French crypto-asset service provider (CASP) entity once operational readiness is confirmed, initially targeting major markets including Germany, the Netherlands, Italy and Spain.
Bottom line: MiCA is already prompting consolidation and product reform in Europe’s crypto sector. For firms that can meet the higher regulatory bar, the rules may present a chance to expand and capture market share — but for lightly structured operators, the new environment could push them out.
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