A recent report revealed crypto trade volumes in Europe had increased exponentially, possibly due to the transparent crypto regulatory law in the region passed in 2023.
A report by a leading crypto data and analytics firm has affirmed Europe as a top destination for crypto trade volumes. Trading activity has reportedly jumped exponentially in the region through euro-backed stablecoins. In December 2023, trading activity denominated in euro was around €16 billion, rising significantly from three months earlier.
“With the passage of the landmark Markets in Crypto Asset Regulation (MiCA) framework in June, EU regulators have distinguished the region as one of the world’s friendliest for crypto companies. Already, several prominent U.S.-based firms have announced European expansions as a hedge against the murky U.S. regulatory regime,” said the report, referring to MiCA, Europe’s crypto regulatory law.
Meanwhile, financial institutions are also exploring the crypto landscape, introducing features like stablecoins, crypto trading, and custody. Société Générale, a French bank, listed a stablecoin on its platform in 2023. With all such initiatives, the euro has increased its market share in the list of currencies used in crypto trading. The euro’s market share jumped from 6.2% to 7.7%.
MiCA, the European crypto regulatory law, has boosted crypto adoption in the region, attracting multiple crypto firms. As these firms set up shop in Europe, their services and products can reach bigger audiences and promote crypto adoption. At the same time, European authorities are also heading other regulatory actions.
Moreover, the European Banking Authority recently amended some guidelines for crypto firms to avoid financial crimes. The rules were specific to money laundering and terrorist financing. Hence, the crypto firms could mitigate and avoid crimes with the recent factors the European Banking Authority provided.
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