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 Swiss-based crypto-asset platform said.
Swissborg, which boasts one million registered users and $1.3 billion in assets under management (AUM), is among the firms 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 softer market cycles, and some global platforms may reevaluate where they allocate capital and operational resources,” SwissBorg Chief Operating Officer Jeremy Baumann told CoinDesk.
Over time, that could lead to “a market of fewer but more resilient players. MiCA raises the regulatory and operational standards required to serve European clients, which could 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 up space for other European players to strengthen their positioning.”
SwissBorg suffered an exploit that it said affected fewer than 1% of its users in September 2025. It reported that 192,600 SOL ($41.5 million) were 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 effort
Baumann said he expects dividend and investment 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 dividend models are designed and distributed,” said Baumann, whose mid-level exchange currently has about $800 million in total value locked (TVL), according to Defilama data.
Baumann also said that regulatory clarity could gradually support greater institutional participation, adding that the European digital asset market is currently largely retail-driven
“Traditional financial institutions can play all three roles,” Baumann said. “They have strong distribution capabilities and regulatory expertise, which obviously makes them competitors in some areas, but there are also opportunities for partnerships.”
EU regulators seek clear stablecoin rules
Baumann also pointed to ongoing political debates surrounding stablecoins and dividend products. While much of that discussion is currently centered in the US, European regulators are primarily focusing on defining clear rules around issuance, reserves and distribution.
“As the market matures, dividend solutions are likely to evolve towards more transparent and better structured models that balance innovation with financial stability,” he said.
SwissBorg sought authorization in France, widely regarded as one of Europe’s stricter regulatory jurisdictions. The approval validates the company’s internal controls, risk management systems and security measures for user assets, according to the company.
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.
