Europe in the crypto race: MiCA sets new standards for investors!

Europe in the crypto race: MiCA sets new standards for investors!

Europe has secured a leading role in the global crypto race with the *Markets in Crypto-Assets* (MiCA) framework. This comprehensive regulation aims to regulate cryptocurrency markets while increasing investor protection. Loud Cointelegraph The trading volume of EU customers increased by 70% in the first quarter of 2025 after the MiCA regulation came into force. In contrast, activity in the American retail investor market fell significantly during this period.

Crypto platforms like Paybis are seeing conscious usage by European investors, while at Coinbase only 18% of spot trading volume comes from retail customers, compared to 40% in 2021. Robinhood also saw crypto trading volume fall by 35% in the first quarter of 2025.

Uniform regulation and safety precautions

The MiCA regulation brought a uniform licensing system for all EU member states, allowing crypto asset service providers to use their license across the EU. The requirements include strict regulation of stablecoins, such as 1:1 collateralization and regular audits. Ethical standards such as clear disclosures, cooling-off periods and transparent fees have been introduced to strengthen investor protection. The discussion about possible models in the USA is stimulated by the GENIUS Act, which could offer a similar structure for the American market in order to eliminate the regulatory confusion there.

In Germany, transactions with cyber assets are subject to a licensing requirement as a financial service. Providers are required to create a white paper and submit it to the regulatory authorities. Governing authorities are working on technical regulations to enforce MiCA regulations, and a publicly viewable registry of crypto-assets white papers will be established to ensure transparency and legal certainty.

Market developments in Europe

France saw a 175% increase in crypto activity, thanks in part to proactive regulatory policies and the 2019 PACTE law. These developments show the high market penetration, which affects around 24% of the population. Meanwhile, Germany leads in institutional infrastructure, with Clearstream soon to offer crypto settlement services. The Netherlands has positioned itself as particularly strong in payment transactions.

In summary, MiCA has created a fundamental, risk-sensitive regulatory system. Not only does it impact innovation in the field of distributed ledger technology, but it also aims to set new standards for the crypto market across Europe. Experts see the MiCA regulation as a decisive step towards creating legal certainty in a rapidly changing market.