As the European Union rolls out its new crypto regime, industry players are closely watching how mica regulation will reshape competition and business models across the bloc.
Summary
SwissBorg secures license as MiCA reshapes the EU crypto landscape
Swiss wealth platform SwissBorg said the EU’s Markets in Crypto Assets framework will significantly change how firms operate in the region. The company believes tougher oversight will narrow the number of active crypto providers, while strengthening those that meet higher standards.
SwissBorg recently obtained its MiCA authorization in France, a jurisdiction known for strict digital-asset supervision. The license allows the firm to serve European clients under the new rules and positions it to expand across major markets in the bloc.
The platform currently manages $1.3 billion in assets and serves one million registered users. However, Chief Operating Officer Jeremy Baumann expects the new framework to test weaker competitors that may struggle with capital, compliance, and technology requirements.
Fewer but stronger players expected under EU rules
Speaking with CoinDesk, Baumann said that “the economics of crypto brokerage can be challenging during softer market cycles.” Moreover, he noted that higher regulatory and operational standards could push some global exchanges to reassess their focus on Europe.
According to Baumann, the stricter regime for European clients may lead to consolidation. He argued that the system “could lead to a market composed of fewer but more resilient players,” as only firms with robust governance and sufficient resources will keep pace with rules and supervision.
He pointed to Gemini‘s recent exit from the European Union as an early example of how global platforms respond when regulatory costs rise. However, he added that when such exchanges scale back their EU presence, “it opens space up for other European players” that are better aligned with local oversight.
French authorization and EU expansion strategy
SwissBorg chose France as its primary regulatory base, a move regulators see as a commitment to operating in one of the bloc’s more demanding environments. The authorization covers internal controls, risk management systems, and user asset safeguards that supervisors now expect from registered providers.
The company plans to migrate operations from Estonia to its French crypto-asset service provider entity as part of its compliance overhaul. That said, SwissBorg aims to leverage this approval to enter key markets such as Germany, the Netherlands, Italy, and Spain once operational readiness is confirmed.
Baumann acknowledged that mica regulation will raise crypto regulatory standards but suggested it could ultimately benefit well-prepared platforms. He said firms that invest early in controls and transparency may gain a competitive edge as less prepared rivals leave or scale down in the bloc.
SOL exploit incident and platform resilience
Alongside its regulatory push, SwissBorg has had to respond to a significant security incident. In September 2025, the company disclosed an exploit that affected fewer than 1% of users and involved 192,600 SOL worth $41.5 million at the time.
The exploit targeted an external wallet used for SwissBorg’s SOL Earn strategy rather than the firm’s core infrastructure. Moreover, the company said the breach stemmed from a partner’s compromised API, stressing that its main platform did not suffer a direct hack.
Despite the incident, SwissBorg reported roughly $800 million in total value locked, citing DefiLlama data. Baumann said the firm continues to operate its yield products under existing controls, arguing that the exploit has informed further refinements in security and operational risk management.
Yield models, stablecoins, and institutional interest
Looking ahead, Baumann said future yield and staking products will adopt clearer disclosures and more standardized structures. However, he emphasized that evolving policy around stablecoins will heavily influence how these models are engineered for European digital-asset investors.
“The framework around stablecoins is more detailed and will shape how certain yield models are designed,” he noted. European regulators continue to refine requirements for issuance, reserves, and distribution, which could tighten stablecoin regulatory rules across the region.
Baumann argued that greater regulatory clarity could eventually support increased institutional participation in the bloc’s crypto markets. That said, he observed that the European digital-asset ecosystem remains largely retail-driven for now, with professional investors still approaching the sector cautiously.
He added that traditional financial institutions can, in principle, play all three roles of issuer, distributor, and service provider. Moreover, he said these firms bring distribution strength and regulatory expertise, while partnerships with dedicated crypto platforms remain a likely path as euro-area rules mature.
Overall, SwissBorg sees tighter oversight reshaping European crypto: fewer but stronger firms, closer scrutiny of yield and stablecoin models, and a gradual opening for institutions as the MiCA rulebook takes full effect.
