Europe is outpacing the US in crypto adoption following the implementation of the Markets in Crypto-Assets (MiCA) regulation. According to Konstantins Vasilenko, co-founder and chief business development officer at Paybis, trading volumes from European Union customers rose 70% quarter-on-quarter in Q1 2025, immediately after MiCA took effect.
Conversely, Paybis observed a decline in US activity during the same period. Vasilenko told Cointelegraph that while retail trading decreased in the US, European users executed larger and more deliberate trades.
Other data supports this trend. Kaiko reports retail customers now account for only 18% of Coinbase’s spot trading volume, down from 40% in 2021. Robinhood’s crypto trading volume dropped 35% in Q1 2025.
“The timing is hard to ignore,” Vasilenko said. “The MiCA licensing window opened on January 1, 2025; in that quarter, our EU volumes jumped 70% while the number of trades barely changed, indicating new, larger investments.”
Crypto firms secure MiCA licenses
Several major crypto firms have aligned with MiCA, obtaining licenses to operate across the EU. OKX, Crypto.com, Bybit, and most recently Coinbase, licensed by Luxembourg’s Commission de Surveillance du Secteur Financier, exemplify this shift.
Vasilenko attributes renewed confidence in Europe to MiCA’s unified licensing, allowing crypto businesses authorized in one EU country to operate throughout the bloc. “Retail clients benefit from consistent legal protections across member states,” he explained.
MiCA also imposes strict stablecoin regulations, including mandatory 1:1 reserves, audits, and asset segregation. It introduces investor safeguards akin to MiFID, such as clear disclosures, cooling-off periods, and transparent fees.
US regulatory fragmentation hampers growth
In contrast, the US market faces regulatory uncertainty despite supportive messaging from President Trump and his administration. Vasilenko noted that “state-by-state licensing, unresolved SEC lawsuits, and abrupt token delistings make it difficult for users to know which coins or staking products remain available.”
France and other European hubs lead
France stands out with a 175% increase in crypto activity, aided by its early 2019 PACTE law requiring AML registration for exchanges. The country benefits from fintech centers like Station F and proactive regulators such as the AMF. Crypto penetration in France is expected to reach 24% of the population this year.
Germany leads in institutional infrastructure, with Deutsche Börse’s Clearstream preparing to offer crypto settlement services. The Netherlands maintains strong payment connectivity, contributing to Europe’s robust crypto ecosystem.
Vasilenko envisions a decentralized European crypto hub: “Liquidity pools in Frankfurt or Paris, customer support in Dublin, and compliance operations in Vilnius—all unified under MiCA.”
Potential US regulatory reform
The US could experience a revival if the GENIUS Act passes through Congress. This legislation aims to establish a unified licensing framework and clear definitions for dollar-backed stablecoins. Vasilenko suggested it could replicate MiCA’s positive impact on US retail crypto markets if enacted by year-end.