EU Crypto Framework Gains Momentum as US Lags Behind

Europe's Markets in Crypto-Assets (MiCA) regulation is reshaping global cryptocurrency flows, with trading platform Paybis reporting a 【70%】 quarter-on-quarter surge in EU activity during Q1 2025. This growth coincides with declining US retail engagement despite the Trump administration's pro-crypto stance.

Regulatory Clarity Drives European Advantage

Paybis co-founder Konstantins Vasilenko notes MiCA's licensing system—implemented January 2025—has attracted larger, more strategic investments. "EU volumes jumped while trade counts remained stable, indicating institutional-grade participation," he told Cointelegraph. The unified passporting system allows single-state authorization for bloc-wide operations.

US Market Faces Structural Challenges

American exchanges show contrasting trends—Coinbase's retail share dropped to 【18%】 from 40% in 2021, while Robinhood's crypto volume fell 【35%】. Vasilenko attributes this to fragmented state regulations and unresolved SEC actions creating uncertainty for ordinary investors.

France Emerges as Regional Leader

Paybis observed a 【175%】 activity spike in France, benefiting from its 2019 PACTE law groundwork. The country's fintech hubs and proactive regulators position it for 【24%】 crypto adoption this year. Germany and the Netherlands also demonstrate specialized strengths in institutional infrastructure and payment systems respectively.

Potential US Turnaround Ahead

The pending GENIUS Act could mirror MiCA's success if passed, establishing clear stablecoin rules and federal licensing. ——This remains the US market's best hope for reclaiming leadership—— as Europe's regulatory maturity continues attracting global capital.