European Crypto Regulation MiCA Shows Enforcement Gaps, Austrian Exchange Reports

Key Takeaways:

• MiCA offers clarity but still suffers from uneven implementation among EU countries.
  
• Bitpanda urges refinements to improve consistency and reduce unnecessary data requests.
  
• Cross-border dialogue and regulator education are essential to create a level EU crypto playing field.

Benedikt Faupel, head of public affairs at Bitpanda, has expressed concerns that the European Union’s landmark Markets in Crypto-Assets Regulation (MiCA) still enables uneven implementation among member states, despite its goal of harmonizing the crypto market.

Speaking during German Blockchain Week, Faupel emphasized that Bitpanda remains one of the few crypto firms with three MiCA licenses—a notable accomplishment for the Austria-founded exchange with operations in Berlin, London, and beyond.

MiCA Brings Clarity, but Harmonization Remains Elusive

Faupel acknowledged that MiCA has successfully replaced a patchwork of 17 different licensing regimes with a single European framework. “With MiCA, you just make it way easier,” he noted, highlighting the importance of clarity for industry players.

However, he warned that national regulators are applying MiCA differently. In some jurisdictions, licensing requires deep institutional scrutiny, while in others, oversight is far more relaxed. This divergence risks creating “imbalances” across the EU crypto market.

Regulatory Interpretation Varies by Country

According to Faupel, MiCA is up for interpretation—and that’s causing friction. “This is not inherent to MiCA,” he explained. “It is just something that happens when you try to regulate something as new as crypto.”

Some regulators conduct exhaustive due diligence before issuing licenses, while others act only when necessary. This inconsistent application dilutes the intended harmonization, potentially putting companies at a competitive disadvantage depending on where they operate.

Bitpanda Calls for Ongoing Legislative Refinement

Faupel argued that while MiCA is largely a “good legislative act,” it still needs iterative improvements—especially concerning reporting requirements. He criticized some regulators for gathering all data indiscriminately before deciding its use, which can add unnecessary burdens on crypto companies.

Also Read: Bybit and OKX Launch MiCA-Compliant Crypto Exchanges in EU as Europe Becomes Crypto Battleground

Bitpanda’s public affairs division is actively engaging with lawmakers and regulators across Europe to educate them on crypto-specific issues. “The market needs to mature,” Faupel said. “And the market, I think, in Europe has matured quite well. And so this is something that we need to drive forward.”

The exchange continues to expand its footprint across Europe. It recently received a MiCA license in Germany and gained approval from the UK’s Financial Conduct Authority (FCA). In a major development, Germany’s Deutsche Bank is reportedly planning to offer crypto custody services via a partnership with Bitpanda starting in 2026.

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