A Decemeber 2024 report by Kaiko and Bitvavo has highlighted the numerous progress of Markets in Crypto-Belongings Regulation (MiCA)- compliant stablecoins within the European Union (EU).
Is MiCA efficiently reshaping the regulatory panorama for digital property? The European cryptocurrency market has skilled a transformative yr in 2024, pushed by elevated euro-denominated buying and selling volumes and the rise of MiCA-compliant stablecoins.
In the meantime, Bitvavo and Kraken remained the most important cryptocurrency exchanges for euro buying and selling by quantity.
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BTC-EUR Buying and selling Pair Performed A Pivotal Function
All through 2024, euro-denominated buying and selling volumes constantly surpassed the common ranges of 2023, reflecting rising demand for euro-based cryptocurrency transactions.
Importantly, month-to-month euro commerce volumes peaked at over €50 billion in November, greater than doubling October’s ranges.
This surge was fueled by Bitcoin’s record-breaking worth highs and elevated institutional adoption throughout Europe.
Moreover, the euro has solidified its place because the third most-traded fiat foreign money in world crypto markets. It accounts for 7.5% of fiat-based buying and selling quantity, trailing solely the US greenback (49.9%) and the Korean gained (33.4%).
The BTC-EUR buying and selling pair performed a pivotal function on this progress. Its share of world Bitcoin-to-fiat quantity climbed from 3.6% to almost 10% over the yr. This development underscores the euro’s rising prominence as a most popular foreign money for cryptocurrency transactions.
Is MiCA A Recreation-Changer For Stablecoins?
The introduction of MiCA has been a turning level for stablecoins in Europe. The regulation, which started rolling out on 30 June 2024, with full implementation anticipated by 30 December 2024, establishes clear compliance requirements for asset-referenced tokens (ARTs) and digital cash tokens (EMTs).
These guidelines intention to boost client safety, enhance market integrity, and foster innovation inside the EU.
MiCA-compliant stablecoins have rapidly captured a dominant share of the European market.
Notably, Tether introduced in November that it will discontinue help for its euro-pegged stablecoin EURT throughout all blockchains.
The choice was attributed to Europe’s evolving regulatory frameworks below MiCA and Tether’s strategic shift towards different initiatives.
As soon as a dominant participant within the euro-stablecoin market, EURT noticed its provide drop considerably from its peak market capitalization of $500 million to only $27 million by late 2024.
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