Experts Predict MiCA Will Fragment The Billion-Dollar Stablecoin Market
Rachel Wolfson has been covering the cryptocurrency, blockchain and Web3 sector since 2017. She has written for Forbes and Cointelegraph and is the host and founder of Web3 Deep Dive podcast.
The stablecoin market has expanded to over $172 billion by October 2023, with the European Union’s Markets in Crypto Assets Regulation (MiCA) playing a key role in shaping its direction.
Recent data from DeFiLlama shows that stablecoins accounted for $123 billion in transactions during that month, reflecting the growing influence of stablecoins in global finance.
Stablecoins make up about 50% of all value settled on public blockchains, surpassing Bitcoin, which only accounts for 25% of such transactions.
Additionally, CryptoQuant reports that stablecoins held on exchanges have surged by 20% this year.
Stablecoins reached a record $170 billion in market cap, highlighting their expanding use in payments and growing role in the broader crypto ecosystem. pic.twitter.com/SGole3qn2d
A major shift is underway as the European Union introduced the Markets in Crypto Assets Regulation (MiCA) in June 2023.
This regulatory framework establishes uniform rules for crypto assets across the EU, and while it isn’t fully implemented yet, its effects are already being felt within the stablecoin market.
Martin Bruncko, Founder and CEO of Schuman Financial, explained to Cryptonews that MiCA mandates compliance with stringent anti-money laundering (AML) policies and numerous other requirements for any stablecoin issuer operating in the EU.
“This covers such areas as custody, protection and investment of reserve assets, risk management, security policies, incident management, data protection, business continuity, complaint management, and many others,” Bruncko
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