Analysis: MiCA Framework Boosts Growth of European Crypto Market, US Retail Trading Cools Down

According to data from Konstantins Vasilenko, co-founder of Paybis, in the first quarter of 2025 after the MiCA regulations came into effect, transaction volume from EU customers increased by 70% quarter-over-quarter. During the same period, retail trading activity in the US market showed a declining trend. Kaiko estimates that currently only 18% of Coinbase's spot trading volume comes from retail investors, down from 40% in 2021. Robinhood's crypto trading volume also dropped by 35% in the first quarter of 2025.

Vasilenko stated that MiCA opened its licensing window on January 1, 2025, leading to the inflow of larger and more purposeful funds. The MiCA framework introduced a unified licensing regime across all EU member states and implemented stringent regulations on stablecoins, requiring 1:1 reserves, audits, and asset segregation, thereby enhancing investor confidence.

In contrast, ongoing regulatory uncertainty in the US has hindered market development. Although former US President Trump and his administration members have expressed supportive remarks on cryptocurrencies, comprehensive federal crypto legislation has yet to be enacted. (Cointelegraph)