Europe’s cryptocurrency market is undergoing a transformation, with stablecoins taking center stage. According to a report by Kaiko and crypto exchange Bitvavo, euro-denominated crypto trading volumes exceeded 2023 averages throughout this year, highlighting the euro’s growing role in the digital asset space. In fact, the euro now accounts for 7.5% of fiat-based crypto trading, trailing only the U.S. dollar and the Korean won.
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MiCA Regulation Drives Stablecoin Growth
The Markets in Crypto-Assets Regulation (MiCA), introduced in June, has reshaped Europe’s stablecoin ecosystem. MiCA sets clear rules for asset-referenced and electronic money tokens, with full implementation expected by year-end. Despite challenges, such as Tether discontinuing its euro-pegged stablecoin EURt due to Europe’s evolving regulatory frameworks, euro-backed stablecoins have thrived. Monthly trading volumes topped $300 million throughout 2024, peaking at nearly $800 million in November.
As Europe continues to adopt regulatory clarity, its crypto market stands out as a region where compliance fuels innovation.
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