Impact

April

USDC

Coin

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/european-union-implements-new-crypto-asset-regulations/" data-wpel-link="internal">European Union Implements New Crypto Asset Regulations</a><br></p>
<p style="text-align: justify">July marked a period of significant changes in the <a href="https://en.coin-turk.com/crypto-bulls-seek-to-expand-gains-in-the-first-half-of-the-year/" data-wpel-link="internal">cryptocurrency</a> world. The European Union’s new crypto asset regulations created substantial activity, especially in the stablecoin market. Circle’s USD Coin (USDC) experienced a significant surge with the implementation of these regulations. According to CCData’s report on July 31, as of July 25, USDC trading on centralized exchanges reached $135 billion, and its market value increased by 5.4% to $33.6 billion.</p> 
<h2 style="text-align: justify" id="impact-of-new-regulations">Impact of New Regulations</h2> 
<p style="text-align: justify">This growth is directly linked to Circle becoming the first stablecoin issuer approved under the European Union’s new Markets in Crypto-Assets (<strong>MiCA</strong>) framework as of July 1. MiCA includes a series of stringent regulations aimed at providing greater transparency and stability in the crypto asset market.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-375942 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/08/blockchain-25.jpg" alt="" width="740" height="415"></p> 
<p style="text-align: justify">These regulations, which require issuers to be based in the EU, inform authorities, and submit an approved white paper, also bring additional requirements such as transaction caps for larger stablecoins and the mandate to hold 60% of reserves in various banks.</p> 
<h2 style="text-align: justify" id="tether-and-market-dynamics">Tether and Market Dynamics</h2> 
<p style="text-align: justify">On the other hand, Tether (USDT) reached a market value of $114 billion with a 1.6% increase in July. However, this growth was more modest compared to USDC’s rapid rise. Nonetheless, <strong>Tether</strong> continues to dominate the stablecoin market, holding approximately 70% of the market share. Additionally, Tether maintained strong <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">financial performance</a> by achieving a record profit of $5.2 billion in the first half of 2024.</p> 
<p style="text-align: justify">The stablecoin market overall saw a 2.1% increase in total value, reaching $164 billion, the highest level since April 2022. However, the trading volume on centralized exchanges fell by 8.4% to $795 billion as of July 25, marking the fourth consecutive month of decline. This decrease indicates the changing dynamics in the cryptocurrency trading environment due to the new regulatory framework.</p> 
<h2 style="text-align: justify" id="role-of-european-banks">Role of European Banks</h2> 
<p style="text-align: justify">Tether’s CEO Paolo Ardoino highlighted the difficulties stablecoin issuers face in finding banks in Europe while trying to comply with the new regulations. The reluctance of European banks to engage with stablecoin businesses poses a significant obstacle for issuers.</p> 
<p style="text-align: justify">The increase in USDC’s trading volume and market value indicates that some issuers view the new regulatory framework positively. As the European Union continues to implement and refine its regulations, further changes in the stablecoin market are likely.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/european-union-implements-new-crypto-asset-regulations/" data-wpel-link="internal">European Union Implements New Crypto Asset Regulations</a></h5>
<p>The post <a href="https://en.coin-turk.com/european-union-implements-new-crypto-asset-regulations/" data-wpel-link="internal">European Union Implements New Crypto Asset Regulations</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.</p>

European Union Implements New Crypto Asset Regulations

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