The European Union’s recently adopted Markets in Crypto Assets (MiCA) Regulation is beginning to reshape the region’s digital assets sector, creating new opportunities and obstacles 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 the companies betting the move will strengthen Europe’s role in regulated digital asset markets after securing its MiCA license.
“The economics of crypto brokerage can be challenging during weaker market cycles, and some global platforms may reevaluate where they allocate capital and operational resources,” SwissBorg COO Jeremy Baumann told CoinDesk.
Over time, this could lead to “a market made up of fewer but more resilient players. MiCA raises the regulatory and operational standards required to serve European customers, which could 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, “this opens the possibility for other European players 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 came from a partner’s compromised application programming interface (API) and not a hack of the SwissBorg platform, they claimed.
The evolution of yield and staking
Baumann said he expects yield and staking products to evolve toward clearer information, stronger risk management and more standardized structures.
“The framework around stablecoins is more detailed and will shape how certain yield models are designed and distributed,” said Baumann, whose mid-tier exchange currently has a total value locked (TVL) of around $800 million, according to Defilama data.
Baumann also said that regulatory clarity could gradually support greater institutional participation, adding that for now, the European digital assets market remains largely retail-driven.
“Traditional financial institutions can play all three roles,” Baumann said. “They have strong distribution capabilities and regulatory expertise, which naturally makes them competitors in some areas, but there are also partnership opportunities. »
EU regulators seek clear rules on stablecoins
Baumann also highlighted ongoing policy debates around stablecoins and yield products. While much of this debate is currently focused in the United States, European regulators are primarily focused on setting clear rules regarding issuance, reserves and distribution.
“As the market matures, yield solutions will likely evolve toward more transparent and better structured models that balance innovation and financial stability,” he said.
SwissBorg has applied for authorization in France, which is widely considered one of the strictest regulatory jurisdictions in Europe. The approval validates the company’s internal controls, risk management systems and safeguards for user assets, according to the firm.
The company plans to migrate its European operations from its current Estonian entity to the new French Crypto Asset Service Provider (CASP) entity in the coming months once operational readiness is confirmed, initially targeting major crypto markets including Germany, the Netherlands, Italy and Spain.
