Europe is gaining ground in the global crypto market thanks to its new Markets in Crypto-Assets (MiCA) framework, with trading volumes from EU customers increasing 70% quarter-on-quarter in Q1 2025. In contrast, activity in the US is experiencing a downward trend, suggesting a shift in investor preference. According to Konstantins Vasilenko, co-founder of Paybis, the increased trading volumes in Europe correspond to larger, more strategic trades coming from new investors following the enforcement of MiCA, while US retail trading appears to be declining.
Crypto platforms such as OKX, Crypto.com, and Bybit have already secured licenses under the MiCA framework, a regulatory approach that streamlines operations across EU member states. This allows licensed crypto services in one country to operate in others without the need for additional licensing, giving retail clients confidence in their legal protections. Vasilenko noted that more stringent regulations on stablecoins under MiCA also add to consumer reassurance.
The contrasting regulatory environment in the US remains uncertain, with ongoing issues such as state-by-state licensing, unresolved lawsuits from the SEC, and unpredictable product offerings, making it hard for ordinary users to navigate the marketplace effectively.
France stands out as a leading nation in the EU's crypto sector, witnessing a 175% jump in trading activity largely attributed to its earlier regulatory efforts. Germany is also making strides in institutional crypto infrastructure, while the Netherlands is enhancing payment connectivity. Vasilenko suggests that the concept of a single leading hub may soon become outdated as diverse operations flourish under MiCA's umbrella.
While the US faces challenges, there is potential for a regulatory revival with the GENIUS Act moving through Congress, which could provide a unified licensing approach and clarity around stablecoins. If adopted, this could potentially mirror some of the successes seen in Europe, according to Vasilenko.
Crypto platforms such as OKX, Crypto.com, and Bybit have already secured licenses under the MiCA framework, a regulatory approach that streamlines operations across EU member states. This allows licensed crypto services in one country to operate in others without the need for additional licensing, giving retail clients confidence in their legal protections. Vasilenko noted that more stringent regulations on stablecoins under MiCA also add to consumer reassurance.
The contrasting regulatory environment in the US remains uncertain, with ongoing issues such as state-by-state licensing, unresolved lawsuits from the SEC, and unpredictable product offerings, making it hard for ordinary users to navigate the marketplace effectively.
France stands out as a leading nation in the EU's crypto sector, witnessing a 175% jump in trading activity largely attributed to its earlier regulatory efforts. Germany is also making strides in institutional crypto infrastructure, while the Netherlands is enhancing payment connectivity. Vasilenko suggests that the concept of a single leading hub may soon become outdated as diverse operations flourish under MiCA's umbrella.
While the US faces challenges, there is potential for a regulatory revival with the GENIUS Act moving through Congress, which could provide a unified licensing approach and clarity around stablecoins. If adopted, this could potentially mirror some of the successes seen in Europe, according to Vasilenko.
