Euro-pegged stablecoin use is increasing amid new European crypto regulations that phase in over time, according to digital asset analytics firm Kaiko.
In a new report, Kaiko says that the European crypto market is facing big changes as the regulations impacting stablecoins in the 2023 Markets in Crypto Assets (MiCA) law go into effect later this month.
Says Kaiko,
“Impending regulation in Europe is about to shake up the stablecoin market. Binance revealed plans to restrict stablecoins that don’t meet the bloc’s Markets in Crypto Assets (MiCA) standards last week. Elsewhere, reports suggest Kraken has been actively reviewing which stablecoins meet the European Union’s standards, potentially leading to delisting of non-compliant stablecoins for their EU users.”
Kaiko suggests that the new crypto regulations could be a “boon” for MiCA-compliant Euro-backed stablecoins as their use is suddenly increasing in Europe.
“While Europe has traditionally lagged the US and APAC when it comes to crypto trading, Euro-backed stablecoins have consistently grown in volume since the beginning of the year, suggesting that demand is finally picking up in European markets. Their average weekly volume in 2024 was $270 billion which is 70 times higher than their EU counterparts. In contrast, just 1.1% of all transactions are done using Euro-backed stablecoins. However, it is notable that this share has increased from near zero in 2020 and is currently at an all-time high.”
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The post Euro-Pegged Stablecoin Volumes Grow As New Regulation Acts As Potential Boon for Sector: Kaiko appeared first on The Daily Hodl.
