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

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2025-06-22 14:44:40
Paybis co-founder Konstantins Vasilenko said that in Quarter 1 2025, after the MiCA regulations came into effect, the transaction volume of European Union customers increased by 70% month-on-month. During the same period, retail trading activity in the US market showed a downward trend. Kaiko estimates that only 18% of Coinbase spot trading volume is currently from retail investors, down from 40% in 2021. Robinhood's crypto trading volume also fell by 35% in Quarter 1 2025.
Vasilenko said that the MiCA opened the licensing window on January 1, 2025, and the new injection of funds was larger and more purposeful. The MiCA framework has boosted investor confidence by introducing a single licensing regime for all European Union member states and imposing strict regulations on stablecoins, requiring 1:1 reserves, audits and asset segregation.
In contrast, continued regulatory uncertainty in the United States has hindered market development. Despite pro-cryptocurrency rhetoric from US President Donald Trump and members of his administration, comprehensive federal crypto legislation has yet to be introduced.
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