EU's MiCA Rules Have Had Little Influence on the European Crypto Market, Regulator Says

The rules, which take effect at the end of the year, have yet to spur increased euro-based transactions in crypto markets.

AccessTimeIconApr 10, 2024 at 3:22 p.m. UTC
Updated Apr 10, 2024 at 3:25 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now
  • Although MiCA is set to start taking effect at year-end, it has yet to lead to an increase in crypto-euro transactions, the European Securities and Markets Authority said.
  • The level of euro-denominated crypto transactions has held steady at about 10% since the regulation became law last year.

The European Union's crypto asset regulation, which became law in 2023 and starts to take effect at year-end, has yet to spur any increase in euro-denominated crypto transactions, the bloc's securities regulator said.

"The announcement of the MiCA regulation has not caused an increase in euro volumes at the current juncture but could constitute a potential growth driver once implemented in 2024, as it is intended to enhance investor protection," the European Securities and Markets Authority said in a report published Wednesday.

The 27-nation trading bloc was one of the first regulatory regimes to introduce a comprehensive rulebook for crypto assets, the Markets in Crypto-Assets law. The rules cover crypto assets and stablecoins, with stablecoin provisions set to kick in six months after the others.

Worldwide, fiat-to-crypto trading volumes fell to 20% in 2023 from 30% in 2021 because of the crypto winter, the report said, though the market has since recovered. This is partially due to the rise in popularity of stablecoins, which are digital assets whose value is pegged to assets like national currencies and allow investors to change their exposure without leaving the crypto ecosystem.

Around 80% of on-ramp and off-ramp transactions, that is those entering or leaving the crypto environment, involve the U.S. dollar or the South Korean won. The euro's "minor role" – a share of 10% – has not changed since the announcement of MiCA, the report said.

Stablecoins form part of over 60% of all crypto transactions, ESMA said in its report. Some 10 exchanges process about 90% of trades, and the largest exchange, Binance, accounts for almost half of global trading volumes, the report said.

Edited by Sheldon Reback.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.