Europe is pulling ahead in the global crypto race under its Markets in Crypto-Assets (MiCA) framework, outpacing even President Donald Trump’s crypto-friendly America.
According to Konstantins Vasilenko, co-founder and chief business development officer at Paybis, trading volumes from EU customers jumped 70% quarter-on-quarter in Q1 2025, right after the MiCA regulation took effect.
During the same period, Paybis activity in the US started trending in the opposite direction. Vasilenko told Cointelegraph that while US retail activity was declining, European users have been placing larger, more deliberate trades.
Other platforms have reported similar shifts in user behavior. Kaiko estimates that only 18% of Coinbase’s spot trading volume now comes from retail customers, down from 40% in 2021. On Robinhood, crypto trading volume fell by 35% in the first quarter of 2025.
“The timing is hard to ignore,” said Vasilenko. “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.”
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Crypto firms secure MiCA licneses
Several crypto firms have already adapted their strategies to align with MiCA. OKX, Crypto.com and Bybit have obtained licenses under the new framework, with Coinbase becoming the latest to gain the license from the Luxembourg Commission de Surveillance du Secteur Financier.
The renewed investor confidence in Europe is driven by key features of MiCA, according to Vasilenko. For one, the MiCA framework introduced a single licensing regime across all EU member states. Once authorized in one country, crypto firms can operate throughout the bloc.
“Once a crypto-asset service provider is authorized in any member state, it can “passport” the same license across the rest of the states, so retail clients know their legal protections travel with them,” Vasilenko said.
Furthermore, MiCA enforces strict rules on stablecoins, requiring full 1:1 reserves, audits, and asset segregation. It also introduces MiFID-style protections like clear disclosures, cooling-off periods, and transparent fees, reducing uncertainty for investors.
On the other hand, in the US, persistent regulatory confusion continues to hold the market back. Despite favorable rhetoric from President Trump and members of his administration, no sweeping federal crypto legislation has materialized.
“State-by-state money-service licenses, unresolved SEC lawsuits, and sudden delistings mean ordinary users still can’t tell which coins, or even which staking products, will be available next month,” Vasilenko said.
Related: EU to ban anonymous crypto accounts and privacy coins by 2027
France emerges as standout
France, in particular, has emerged as a standout in Europe. Vasilenko said Paybis saw a 175% spike in crypto activity in the country, thanks in part to its head start under the 2019 PACTE law, which already required AML registration for exchanges.
The presence of top fintech hubs like Station F and the AMF’s proactive regulatory stance have helped make France one of Europe’s most crypto-engaged countries, with penetration expected to reach 24% of the population this year.
Germany leads in institutional infrastructure, with Deutsche Boerse’s Clearstream set to offer crypto settlement services. The Netherlands, meanwhile, continues to punch above its weight with strong payment connectivity.
According to Vasilenko, the idea of a single “hub” may become outdated. “Liquidity pools in Frankfurt or Paris, customer support in Dublin, and compliance ops in Vilnius — all under the single MiCA umbrella,” he said.
The US could still see a comeback. The GENIUS Act, currently making its way through Congress, could introduce a unified licensing regime and clear definitions for dollar-backed stablecoins. If passed by year-end, Vasilenko believes it “would do for US retail what MiCA just did for Europeans.”
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