The post Chainalysis analyzes the impact on stablecoins appeared on BitcoinEthereumNews.com.

Chainalysis explains the reason why stablecoins have been selected as the first target of MiCA regulation. Why were stablecoins chosen as the first tool for MiCA regulation? The experts at Chainalysis explained it June 30, 2024 marks an important milestone for crypto assets in the European Union, with the entry into force of the regulation aimed at regulating stablecoins.  This event represents the first step of the MiCA (Markets in Crypto-Assets), the comprehensive regulatory framework established by the EU for the regulation of cryptocurrencies, which will be implemented in phases, with full compliance required by the end of the year. The experts at Chainalysis have conducted a detailed analysis to understand why stablecoins were selected as the first target of MiCA regulation. There are several main reasons that explain this strategic choice. 1. Stability of value Stablecoins, as the name suggests, are designed to maintain a stable value, often pegged to a fiat currency like the US dollar or the euro. This characteristic makes them less volatile compared to other cryptocurrencies like Bitcoin and Ethereum. The stability of value is crucial for daily transactions and makes them an ideal starting point for integration into the traditional financial system. 2. Wide use and adoption The stablecoin are among the most used and adopted crypto assets in the world of cryptocurrencies. According to data from Chainalysis, in 2023 the overall transaction volume on the blockchain reached 10 trillion dollars, with stablecoin making up 60% of that volume.  This data highlights the importance and widespread use of stablecoin in the cryptocurrency market, making them a key target for initial regulation. 3. Ease of monitoring Unlike traditional cryptocurrencies, stablecoins are easier to monitor and trace, thanks to their structure anchored to fiat currencies. This characteristic facilitates the task of regulatory authorities in following the…

---

Filed under: News - @ July 2, 2024 4:16 pm