Regulation
Chainalysis Reports on New EU Stablecoin Rules, Effective June 30
Blockchain analytics firm Chainalysis has released a report detailing the implementation of the European Union’s “Stablecoins Regime” (MiCA) cryptocurrency markets regulation, which will come into force on June 30, 2024.
The report indicates that stablecoins dominated crypto transactions in 2023, comprising 60% of the $10 trillion on-chain transaction volume. The company also reports an average daily transfer of $17.4 billion via stablecoins, with 1.5 million transfers per day. Notably, 91% of these transactions were valued under $10,000, suggesting widespread retail use.
THE report outline MiCA’s new licensing requirements for issuers of asset reference tokens (ARTs) and electronic money tokens (EMTs) within the EU. This regulatory framework aims to harmonize the previously fragmented landscape, improving legal certainty and consumer protection.
Chainalysis explains that ARTs can be pegged to various assets or multiple currencies, while EMTs are tied to a single official currency. Both categories are now subject to full regulatory scrutiny under MiCA.
The company’s analysis also reveals an emerging trend of longer holding periods for stablecoins, averaging 40 weeks before transfer, indicating evolving user behavior in the cryptocurrency market.
While the stablecoin regime is effective immediately, it is also noted that the comprehensive MiCA framework for other crypto assets and service providers will be implemented on December 30, 2024. This phased approach allows industry participants to adapt to the new regulatory environment.
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