Stricter MiCA rules could thin crypto industry across the EU, says Swiss wealth manager

Crypto wealth manager Swissborg gets MiCA approval and prepares to move its European operations to France while targeting growth in markets including Germany, Italy and Spain.

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What to know:

• The European Union’s new MiCA regulations are reshaping the region’s crypto industry by raising regulatory and operational standards, which could reduce the number of lightly regulated platforms.
• SwissBorg, which recently secured a MiCA license and plans to shift its European operations to a newly authorized French entity, aims to expand into major EU markets as some global exchanges scale back in the bloc.
• SwissBorg’s COO expects yield and staking products, particularly those linked to stablecoins, to move toward clearer disclosures and more standardized, transparent structures as regulators push for stricter rules and institutions gradually increase their participation.

The European Union’s recently-adopted Markets in Crypto Assets (MiCA) regulations is beginning to reshape the region’s digital-asset industry, creating new opportunities and barriers for firms seeking to operate across the bloc, a Swiss-based crypto wealth platform said.

Swissborg, which boasts one million registered users and $1.3 billion in assets under management (AUM), is among the companies betting that the shift will strengthen Europe’s role in regulated digital-asset markets after securing its MiCA license.

“The economics of crypto brokerage can be challenging during softer market cycles, and some global platforms may reassess where they allocate capital and operational resources,” SwissBorg Chief Operating Officer 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 required to serve European clients, which may reduce the number of lightly structured players," he said, referring to Gemini’s recent EU exit.

Baumann also said that when global exchanges reduce their presence in the EU, “it opens space up for other European players to strengthen their positioning.”

SwissBorg suffered an exploit it said affected fewer than 1% of its users in September 2025. It reported 192,600 SOL ($41.5 million) was stolen from an external wallet used exclusively for its SOL Earn strategy. The exploit stemmed 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 disclosures, 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-level exchange currently has roughly $800 million in total value locked (TVL), according to Defilama data.

Baumann also said regulatory clarity could gradually support greater institutional participation, adding that for now the European digital-asset 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 opportunities for partnerships.”

EU regulators seek clear stablecoin rules

Baumann also pointed to ongoing policy debates around stablecoins and yield products. While much of that discussion is currently centered in the United States, European regulators are focusing primarily on defining clear rules around issuance, reserves and distribution.

“As the market matures, yield 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, which is widely viewed as one of Europe’s stricter regulatory jurisdictions. 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 newly authorized 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.

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