The MiCA (Markets in Crypto Assets) regulation, created by the European Union, aims to bring order to the crypto asset space. However, it has not significantly increased euro-denominated crypto transactions, as noted in an ESMA study. Despite being the first legal framework for crypto assets and stablecoins, its impact on EU transaction volumes is still uncertain.

The MiCA regulation, which takes full effect in 2024, aims to provide greater protection for EU crypto market participants. It includes a framework for crypto asset rules and specific provisions for stablecoins, which are expected to create a safer and more controlled trading environment. However, the euro's role in cryptocurrencies remains minor, accounting for only about 10% of transactions.

Globally, fiat-to-crypto trading volumes have decreased from 30% in 2021 to 20% in 2023 during a crypto winter, but the market has since recovered. This change is partly due to stablecoins, which are linked to national currencies and allow for adjustments within the crypto ecosystem. Despite these global shifts, the euro remains a minor player in the industry.

Stablecoins now make up over 60% of all cryptocurrencies and display a significant concentration of trading volume, with ten exchanges processing roughly 90% of trades. Binance is the largest exchange, accounting for nearly half of the world's volume. This concentration makes major platforms crucial players in the cryptocurrency trading market.

ESMA is currently in the third consultation stage for the MiCA regulations, seeking public input on the rules. This is part of ESMA's strategy to create a secure and regulated crypto marketplace in the EU. The final draft of the law outlines legislative actions implemented throughout Europe.