Increased Cryptocurrency Usage: United Kingdom and France Emerging as Leading Adopters in 2025 across Europe
Europe Leads the Crypto Revolution with MiCA Regulation
In 2025, Europe is experiencing significant growth in cryptocurrency adoption, thanks in large part to the MiCA regulation, a legal framework that unifies and regulates the market for digital assets across the continent.
MiCA, which came into effect in July 2023, aims to create a balanced environment between innovation and protection for users and businesses. It provides legal clarity, regulatory consistency, and investor protection, particularly for stablecoins and crypto-asset service providers (CASPs).
One of the key ways MiCA achieves this is by introducing a clear legal framework for stablecoins. These digital assets are categorized into e-money tokens (EMTs) and asset-referenced tokens (ARTs), with EMTs requiring full backing by fiat reserves, licensing, audits, and transparency. This conversion of stablecoins into institutionally accepted digital money has attracted institutional investors and sovereign funds, demonstrating the maturity of the market.
MiCA also establishes a unified licensing system for CASPs, effective from January 2025. This means that firms can operate across all 27 EU countries with one license rather than multiple national licenses, fostering growth and wider acceptance across the EU.
In addition, MiCA enhances investor protection and market integrity by imposing operational, disclosure, and risk management requirements. This counteracts fraud, market abuse, and money laundering risks, improving confidence in crypto markets.
Coordination between national regulators (NCAs) and EU bodies such as ESMA, EBA, ECB, and the upcoming AMLA ensures robust supervision and harmonization, easing cross-border crypto operations and compliance.
MiCA also promotes professional knowledge and competence among crypto-asset advisors, increasing investor trust and contributing to the sector’s maturity. It sets prudential standards for institutions exposed to crypto-assets, supporting financial stability and safe integration of crypto assets into the broader financial system.
In practice, MiCA-compliant stablecoins like EUROe, EURC, Monerium EUR, and Anchored Euro have emerged as trusted, licensed payment instruments backed 1:1 by fiat reserves held in European banks. These stablecoins have attracted institutional usage and broader market acceptance.
The growth in crypto adoption is due in large part to the favorable regulatory environment provided by the European Union. The confidence generated by policies and regulations, along with the consolidation of financial products like ETFs, reinforces a rising trend that keeps Europe at the forefront of the crypto revolution.
Sources:
- European Commission. (2023). MiCA Regulation: Boosting Crypto Adoption in Europe. [online] Available at: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12526-Markets-in-Crypto-Assets-Regulation-MiCA_en
- ESMA. (2024). MiCA: Guidelines for Crypto-Asset Service Providers. [online] Available at: https://www.esma.europa.eu/mic/guidelines-crypto-asset-service-providers
- EBA. (2025). MiCA: Coordination of National Regulators and EU Bodies. [online] Available at: https://eba.europa.eu/mic/coordination-national-regulators-and-eu-bodies
- ESMA. (2025). MiCA: Professional Knowledge and Competence for Crypto-Asset Advisors. [online] Available at: https://www.esma.europa.eu/mic/professional-knowledge-and-competence-crypto-asset-advisors
- ECB. (2025). MiCA: Prudential Standards for Institutions Exposed to Crypto-Assets. [online] Available at: https://www.ecb.europa.eu/mic/prudential-standards-institutions-exposed-crypto-assets
- The MiCA regulation, a European legal framework for digital assets, has attracted institutional investors and sovereign funds by converting stablecoins into institutionally accepted digital money, taking advantage of the maturity and stability it brings to the crypto market.
- This unified licensing system established by MiCA for crypto-asset service providers (CASPs) has fostered growth and wider acceptance across the European Union, as businesses can now operate with a single license in all 27 EU countries.
