Europe’s MiCA regulation is rapidly transforming the region into a global crypto hub, outpacing the US despite political support for the industry.
Key Takeaways
- 1Europe saw a 70 percent jump in crypto trading volumes after MiCA went into effect in early 2025
- 2US crypto activity declined during the same period due to ongoing regulatory uncertainty
- 3Major platforms like Coinbase and Crypto.com are securing MiCA licenses to expand across the EU
- 4Experts say MiCA’s clarity and unified licensing are drawing global firms and investors toward Europe
While the US administration talks crypto, Europe is taking action. The implementation of the Markets in Crypto Assets (MiCA) regulation has given the European Union a commanding lead in the global digital asset space. In contrast, American users and platforms continue to face uncertainty due to patchy and inconsistent regulations.
Europe’s MiCA Drives Crypto Momentum
MiCA officially took effect on January 1, 2025, providing a single licensing framework for crypto firms operating across the European Union. Since then, the impact has been immediate and measurable.
- Paybis reported a 70 percent increase in trading volumes from EU customers in Q1 2025, despite little change in the number of trades
- This suggests larger and more intentional investments, according to co-founder Konstantins Vasilenko
- Vasilenko noted that while US retail activity declined, “EU users have been placing larger, more deliberate trades”
Major exchanges are quickly adapting:
- OKX, Crypto.com, Bybit, and most recently Coinbase, have all secured MiCA licenses
- Under MiCA, once a firm is licensed in one EU country, it can operate throughout all member states
The regulation mandates:
- 1:1 stablecoin reserves
- Mandatory audits
- Clear disclosures, transparent fees, and cooling-off periods
These protections are not only boosting investor confidence but also making Europe more attractive to firms seeking predictability.
US Struggles with Patchy Oversight
In contrast, the US crypto market remains fragmented and uncertain. Despite vocal support from President Trump and allies, there has been no major federal crypto legislation.
According to Vasilenko:
“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.”
The numbers back this up:
- Retail participation on Coinbase dropped to 18 percent in Q1 2025, down from 40 percent in 2021, per Kaiko
- Robinhood saw a 35 percent decline in crypto trading volume in the same quarter
France and Germany Lead Europe’s Crypto Growth
France stands out with a 175 percent surge in crypto activity, thanks to its early adoption of crypto rules under the 2019 PACTE law and a proactive stance by the AMF.
Germany is building robust institutional infrastructure, with Deutsche Boerse’s Clearstream preparing to offer crypto settlement services. Meanwhile, the Netherlands continues to outperform expectations due to its strong payment systems.
Vasilenko highlighted the flexibility of the EU model:
“Liquidity pools in Frankfurt or Paris, customer support in Dublin, and compliance ops in Vilnius ,all under the single MiCA umbrella.”
Outlook: Will the US Catch Up?
All eyes are now on the GENIUS Act, a proposed US law that could mirror MiCA’s benefits. If passed, it would create a unified licensing regime and clearer rules for stablecoins, potentially revitalizing the American retail market.
“It would do for US retail what MiCA just did for Europeans,” Vasilenko concluded.
CoinLaw’s Takeaway
MiCA is reshaping the crypto landscape by offering clarity, consistency, and cross-border access within the EU. While the US still has the potential to reclaim leadership, its current patchwork approach is driving firms and users abroad. Europe’s proactive regulatory model may well become the global standard for crypto governance.
