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 new data.

Trading Volume Surge in Q1 2025

Paybis data shows a dramatic shift following MiCA’s January 1 implementation. Trading volumes from EU customers jumped 70% quarter-on-quarter in Q1 2025. Conversely, Paybis activity in the US showed a downward trend during the same period.

Co-founder Konstantins Vasilenko noted while US retail activity declined, European users have been executing larger, more deliberate trades. Similar patterns emerged across platforms, with Kaiko estimating that only 18% of Coinbase’s spot trading volume comes from retail now, down from 40% in 2021. Robinhood’s crypto trading volume also fell by 35% in Q1 2025.

“The timing is hard to ignore. 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.” – Konstantins Vasilenko, Paybis

Crypto firms secure MiCA licences

Several major crypto firms have secured MiCA authorizations, including OKX, Crypto.com, Bybit, and Coinbase (via Luxembourg’s CSSF). Key factors cited by Vasilenko driving investor confidence include:

  • A single passporting system allowing licenses granted in one EU state to operate across the bloc.
  • Strict stablecoin rules requiring full 1:1 reserves, audits, and asset segregation.
  • MiFID-style investor protections featuring clear disclosures, cooling-off periods, and transparent fees, reducing uncertainty.

By contrast, persistent regulatory confusion in the US, despite administration rhetoric, continues to hinder the market. Vasilenko highlighted ongoing challenges like “state-by-state money-service licenses, unresolved SEC lawsuits, and sudden delistings,” creating significant uncertainty for users.

France emerges as standout

France stands out within Europe, with Paybis reporting a 175% spike in crypto activity, partly aided by its earlier 2019 PACTE law requiring AML registration for exchanges. Its status as a fintech hub and the AMF’s proactive stance contribute to high engagement, projected to reach 24% population penetration.

Germany leads in institutional infrastructure, with Deutsche Börse’s Clearstream offering crypto settlement services, while the Netherlands excels in payment connectivity.

Vasilenko suggests the idea of a single “hub” may become less relevant under MiCA, with specialized centers emerging: liquidity pools in Frankfurt/Paris, support in Dublin, compliance in Vilnius. He noted that a similar unified US framework, the GENIUS Act, could reignite retail enthusiasm if passed by year-end.

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