🇪🇺 The European Union regulator has warned that 90% of cryptocurrency trading in the region is conducted by just 10 exchanges.

🇪🇺 The European Union regulator has warned that 90% of cryptocurrency trading in the region is conducted by just 10 exchanges.

It is noteworthy that Binance alone controls approximately half of the market. Additionally, the report identifies significant differences in market liquidity: predictably, larger exchanges demonstrate higher levels of liquidity.


➡️ ESMA noted that while savings through scale can be beneficial in terms of efficiency, "...serious concerns are raised about potential consequences that may affect the exchange or the broader crypto system in case of failure or malfunction of the underlying asset." The existing imbalance serves as additional justification for the implementation of the EC MiCA (cryptocurrency bill, which comes into effect precisely in 2024).

➡️Moreover, approximately 55% of transactions are conducted on cryptocurrency exchanges licensed under EU's VASP framework. The remaining transactions, accordingly, take place outside the European Union—thus, control by the regulator is impossible.

More interesting insights from the report:

👉Analysis of fiat currencies used in the crypto market revealed a strong dependence on the USD and the South Korean won. Meanwhile, the euro plays an insignificant role, accounting for about 10% of transactions.

👉The authors of the study question the concept of "crypto havens" to protect investments during crisis periods. They insist that cryptocurrency volatility is somehow related to the volatility of traditional assets, whereas the connection with gold—the benchmark haven—is less evident.

👉Bitcoin, Ethereum, and Tether dominate the European crypto market, with 74% of the total capitalization and 55% of the annual trading volume.

#news #Europe #crypto"