New exchange listings suffer due to regulatory pressure in EU
The post New exchange listings suffer due to regulatory pressure in EU appeared on BitcoinEthereumNews.com.
The Markets in Crypto-Assets (MiCA) is a regulatory framework established by the European Union. It aims to standardize and supervise the digital asset market in the EU, creating a uniform regulatory approach across the EU. The regulation covers various digital assets, including stablecoins, and sets out rules for their issuance, trading, and custody. While MiCA isn’t the first broad crypto regulatory framework in the EU, it’s the first one that specifically targets the fast-growing DeFi market in the region. The regulation has “extraterrestrial scope,” which means that it applies not only to EU member states but also to all businesses providing services to customers in the EU and to any businesses providing services using the Euro. Although full implementation isn’t anticipated until December, MiCA’s impact is already noticeable in the global crypto market as stablecoin legislation went live at the end of June. As it applies to companies and exchanges headquartered outside of the EU, which constitutes a notable part of the global market, companies are already adjusting to the new reality of providing services in the EU. The increased regulatory pressure in the United States has also affected the global market. With digital assets, especially Bitcoin, slowly becoming a new political frontier ahead of the 2024 Presidential elections, the political and regulatory uncertainty has put companies and exchanges in the country on edge. Data from Kaiko showed a noticeable shift in the rate of new exchange listings, showing companies around the world are becoming more cautious. Crypto exchange listings have slowed down significantly since the peak of the 2021 bull run. This slowdown is evident in the reduced growth rate in new trading pairs across major exchanges providing services to customers in the EU and US. Kaiko’s data found a decline from a 9% growth rate before Bitcoin’s ATH…
Filed under: News - @ July 10, 2024 11:26 am