Europe’s Crypto Momentum Surpasses the U.S.
Europe appears to be gaining an edge in the global cryptocurrency landscape with the introduction of its crypto asset framework known as MICA, outpacing even the pro-crypto stance taken by former President Trump’s administration.
Konstantins Vasilenko, who is the Co-Founder and Chief Business Development Officer of Paybis, noted a remarkable 70% increase in transaction volume from European customers in the first quarter of 2025, right after the MICA regulations took effect.
In stark contrast, activity from U.S. consumers declined during the same timeframe. Vasilenko pointed out to Cointelegraph that European users are now conducting more intentional transactions, whereas U.S. retail engagement seems to be shrinking.
This trend isn’t isolated. Other platforms have also observed notable shifts. For instance, Kaiko indicated that only 18% of Coinbase’s trading volume now comes from retail users, a drop from 40% in 2021. Similarly, Robinhood experienced a 35% decrease in crypto trading volume in early 2025.
“It’s tough to disregard the timing,” Vasilenko commented. “The MICA license window opened on January 1, 2025, and we saw a 70% boost in EU transaction volume, yet the overall number of transactions didn’t see much change.”
Adapting to MICA Regulations
Several cryptocurrency firms are adjusting their approaches to comply with MICA standards. Companies like OKX, crypto.com, and BYBit are already licensed under the new framework, and Coinbase has recently received licenses from Luxembourg’s oversight authority.
Vasilenko expressed that the confidence of new investors in Europe stems largely from the defining aspects of MICA. One major benefit is the introduction of a unified licensing regime throughout EU member states. This means that once a company is approved in one nation, it can operate across borders within the bloc.
“When crypto-asset service providers secure approval in one country, they can ‘passport’ that same license to others, ensuring that retail clients enjoy the same legal protections no matter where they are,” Vasilenko explained.
The MICA framework also enforces stringent rules for stablecoins, requiring them to maintain full 1:1 reserves, undergo audits, and ensure asset separation. Additionally, it introduces protections for consumers—like clearer disclosures and cooling-off periods—to alleviate investor uncertainty.
Conversely, the regulatory environment in the U.S. remains challenging. Despite encouraging rhetoric from Trump and other officials, there hasn’t been significant progress on federal crypto legislation.
“The inconsistencies with state-level licenses, ongoing SEC lawsuits, and sudden registration frameworks leave everyday users unclear about which cryptocurrencies or staking options will be available next month,” remarked Vasilenko.
France Rises as a Leader
France has particularly stood out in this evolving landscape, according to Vasilenko, as Paybis recorded a significant 175% increase in crypto activity within the country.
The presence of prominent fintech hubs like Station F, coupled with AMF’s proactive regulatory stance, is likely to make France a key player in Europe’s crypto sector, potentially reaching 24% penetration in the population this year.
Germany is advancing its institutional framework as well, establishing a solid foundation for crypto payment services. Meanwhile, the Netherlands continues to maintain its influence through strong payment connections.
Vasilenko suggested that the concept of a single centralized “hub” might soon become outdated, explaining that “the liquidity pool in Frankfurt, customer support in Dublin, and compliance in Vilnius all come under one MICA umbrella.”
There’s still potential for a comeback in the U.S.; the Genius Act is currently being considered in Congress. If successful, it could establish a uniform licensing system and a clear definition for dollar-backed stablecoins. Vasilenko believes that if it’s enacted by the end of the year, “we’ll achieve what MICA has done for retail investors in Europe.”
