As the U.S. continues to grapple with regulatory uncertainty, Europe is emerging as a global leader in crypto regulation and adoption, driven by the implementation of the Markets in Crypto-Assets (MiCA) framework. Despite President Donald Trump’s pro-crypto stance, analysts and exchanges report that Europe is attracting more meaningful activity, especially among retail traders.
MiCA Regulation Fuels 70% Growth in EU Volumes
According to Konstantins Vasilenko, co-founder and chief business development officer at Paybis, EU crypto volumes surged 70% quarter-on-quarter in Q1 2025 — the same quarter that MiCA regulations officially came into effect.
“MiCA’s licensing window opened on January 1, 2025. In that very quarter, our EU volumes jumped 70% while the number of trades hardly moved, which tells me the new money was larger and more deliberate,” Vasilenko stated.
In contrast, U.S. crypto activity declined, as retail users faced mounting confusion over licensing, compliance, and product availability.
Retail Exodus in the U.S. Continues
While Europe streamlined access for crypto firms and investors through MiCA’s unified licensing, U.S. users continue to face fragmented state-by-state regulations, ongoing SEC lawsuits, and sudden delistings. Platforms like Coinbase and Robinhood have seen noticeable drops in retail participation:
- Coinbase’s retail volume now accounts for just 18%, down from 40% in 2021.
- Robinhood’s crypto trading volume fell by 35% in Q1 2025.
“Despite favorable rhetoric, the U.S. still lacks a federal crypto framework, which limits clarity for both users and businesses,” Vasilenko added.
Why MiCA Is Attracting Global Crypto Players
MiCA’s core strength lies in its passporting feature, allowing firms licensed in one EU country to operate across all member states. The law also enforces:
- Strict 1:1 reserve requirements for stablecoins
- Mandatory audits and asset segregation
- Consumer protections like transparent fees and cooling-off periods
Major exchanges like OKX, Crypto.com, Bybit, and Coinbase have already secured MiCA licenses to expand within the EU.
France Leads, But EU-Wide Momentum Builds
France has become a crypto hotspot, driven by early regulatory adoption through the PACTE law and active government support. Crypto usage rose 175% in France, with hubs like Station F and the AMF boosting fintech innovation.
Other countries contributing to the EU’s crypto rise include:
- Germany: Institutional infrastructure and Clearstream’s upcoming settlement services
- Netherlands: High-speed payment rails and connectivity
- Lithuania and Ireland: Compliance and support operations under the MiCA umbrella
Can the U.S. Catch Up?
There’s still hope for a U.S. rebound. The proposed GENIUS Act could create a unified national framework, similar to MiCA, offering clearer guidelines on stablecoins and crypto services. If passed by year-end, experts believe it could revitalize U.S. retail interest and level the regulatory playing field.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.