Europe Leads Global Crypto Race with 70% Trading Volume Surge Post MiCA

Europe is taking the lead in the global cryptocurrency race, surpassing even the crypto-friendly policies of Donald Trump's administration in the United States. This shift is largely attributed to the implementation of the Markets in Crypto-Assets (MiCA) framework, which has significantly boosted trading volumes and investor confidence in the region.

Konstantins Vasilenko, co-founder and chief business development officer at Paybis, noted a 70% increase in trading volumes from EU customers in the first quarter of 2025, immediately following the enforcement of MiCA. In contrast, Paybis observed a decline in US retail activity during the same period. Vasilenko highlighted that European users were making larger, more deliberate trades, indicating a growing trust in the regulatory environment.

Other platforms have also reported similar trends. For instance, the proportion of Coinbase’s spot trading volume from retail customers has decreased from 40% in 2021 to 18% in 2025. Additionally, crypto trading volume on Robinhood fell by 35% in the first quarter of 2025. Vasilenko emphasized the significance of the timing, noting that the MiCA licensing window opened on January 1, 2025, coinciding with the surge in EU volumes and the decline in the number of trades, suggesting that the new investments were more substantial and strategic.

Several crypto firms have already adapted their strategies to comply with MiCA. OKX, Crypto.com, and Bybit have obtained licenses under the new framework, with Coinbase being the latest to secure a license from the Luxembourg Commission de Surveillance du Secteur Financier. The MiCA framework introduces a single licensing regime across all EU member states, allowing crypto firms to operate throughout the bloc once authorized in one country. This feature provides legal protections for retail clients, ensuring their investments are safeguarded across the EU.

MiCA also enforces strict rules on stablecoins, requiring full 1:1 reserves, audits, and asset segregation. It introduces MiFID-style protections, including clear disclosures, cooling-off periods, and transparent fees, which reduce uncertainty for investors. In contrast, the US continues to face regulatory confusion, with no sweeping federal crypto legislation in place despite favorable rhetoric from President Trump and his administration. State-by-state money-service licenses, unresolved SEC lawsuits, and sudden delistings create an uncertain environment for ordinary users, making it difficult for them to predict the availability of coins or staking products.

France has emerged as a standout in Europe, with a 175% spike in crypto activity. This growth is partly due to the 2019 PACTE law, which required AML registration for exchanges. The presence of top fintech hubs like Station F and the proactive regulatory stance of the AMF have made France one of Europe’s most crypto-engaged countries. Germany leads in institutional infrastructure, with Deutsche Boerse’s Clearstream set to offer crypto settlement services. The Netherlands continues to excel with strong payment connectivity.

Vasilenko suggested that the concept of a single "hub" may become outdated. Instead, liquidity pools in Frankfurt or Paris, customer support in Dublin, and compliance operations in Vilnius could all operate under the single MiCA umbrella. The US could still see a comeback if the GENIUS Act, currently making its way through Congress, is passed by year-end. This act aims to introduce a unified licensing regime and clear definitions for dollar-backed stablecoins, potentially revitalizing the US retail crypto market in a manner similar to MiCA's impact on Europe.