Despite Trump’s backing, cryptocurrency is choosing MiCA over America
MiCA’s licence clarity aided Europe in capturing crypto flows as US retail activity fell despite Trump’s crypto-friendly policies. Europe is emerging as the global frontrunner in the cryptocurrency space, thanks to its Markets in Crypto-Assets (MiCA) framework, surpassing even the crypto-supportive stance of President Donald Trump’s America.
According to Konstantins Vasilenko, co-founder and Chief Business Development Officer at Paybis, EU consumer trade volumes surged by 70% quarter-over-quarter in Q1 2025, shortly after the MiCA regulations came into effect.
During the same period, Paybis’ activity in the United States began to move in the opposite direction. Vasilenko told Cointelegraph that while US retail activity was falling, European consumers were making larger, more methodical trades.
Other sites have experienced comparable shifts in user behaviour. Kaiko reports that retail participation in Coinbase’s spot trading has dropped to just 18%, a sharp decline from 40% in 2021. Meanwhile, Robinhood saw its crypto trading volume fall by 35% in the first quarter of 2025.
“The timing is hard to overlook,” remarked Vasilenko. “MiCA’s licensing window opened on January 1, 2025, and in that same quarter, our EU trade volumes surged by 70%—despite little change in trade count. That suggests the incoming capital was not only larger but also more intentional.”
Crypto firms secure MiCA licences
Several cryptocurrency firms have already changed their methods to comply with MiCA. OKX, Crypto.com, and Bybit have already obtained licenses under the new MiCA framework, while Coinbase became the first to be licensed by Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
According to Vasilenko, important MiCA elements have contributed to restoring investor confidence in Europe. For example, the MiCA framework established a uniform licensing procedure for all EU member states. Once licensed in one country, crypto businesses can operate throughout the bloc.
“Once a crypto-asset service provider is licensed in any EU member state, that authorisation can be ‘passported’ across all other states—giving retail clients confidence that their legal protections follow them,” Vasilenko explained to the BBC.
Furthermore, MiCA has tight restrictions for stablecoins, including full 1:1 reserves, audits, and asset segregation. It also includes MiFID-style protections such as explicit disclosures, cooling-off periods, and transparent fees, which reduce investor confusion.
In the United States, however, regulatory uncertainty continues to stymie the market. Despite favourable comments from President Trump and parts of his cabinet, no comprehensive federal crypto legislation has been enacted.
“With the patchwork of state-by-state money service licenses, ongoing SEC lawsuits, and unexpected token delistings, everyday users are left uncertain about which coins or staking products will still be available next month,” Vasilenko said.
France emerges as a standout.
France, in particular, has emerged as an outlier in Europe. According to Vasilenko, Paybis experienced a 175% increase in crypto activity in the country, thanks in part to its early start under the 2019 PACTE law, which already mandated AML registration for exchanges.
The presence of leading fintech centres such as Station F, as well as the AMF’s proactive regulatory attitude, has contributed to France becoming one of Europe’s most crypto-engaged countries, with penetration predicted to hit 24% this year.
Germany leads in institutional infrastructure, with Deutsche Börse’s Clearstream preparing to offer cryptocurrency settlement services. Meanwhile, the Netherlands continues to outperform other countries in terms of payment connection.
According to Vasilenko, the concept of a single “hub” could become obsolete. “Liquidity in Frankfurt or Paris, support teams in Dublin, and compliance in Vilnius—all functioning cohesively under MiCA’s unified regulatory structure,” he told reporters.
The United States could still make a comeback. The GENIUS Act, which is now being debated in Congress, could provide a single licensing regime and provide precise definitions for dollar-backed stablecoins. If passed by the end of the year, Vasilenko believes it “would do for US retail what MiCA just did for Europeans”.
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