The European Securities and Markets Authority (ESMA) has found that market liquidity can vary widely, with higher liquidity in the largest exchanges. Contrary to popular belief, cryptocurrencies do not consistently serve as a safe haven during market stress, as they are strongly interconnected with equities and have no stable relationship with gold. Despite regulatory efforts such as the EU Virtual Asset Service Provider (VASP) license, ESMA’s study suggests that a significant portion of transactions executed on EU-licensed exchanges likely occur outside the EU. This underscores the need for continued monitoring and regulation of the crypto market.
Related Posts
Iran-Israel conflict sparks $860m sell-off as funding rates are affected
- admin
- April 13, 2024
- 0
Geopolitical instability historically prompts investors to move away from risky assets such as cryptocurrencies, favoring more stable investments as a safe haven. This shift often […]
Top Cryptocurrencies to Keep an Eye on This Week: AVAX, JASMY, BONK
- admin
- June 23, 2024
- 0
The market experienced a downturn, resulting in prolonged losses throughout. This led to a substantial selloff, causing a $70 billion reduction in the global crypto […]
Solana and Cardano Experience Decline as Market Reacts to Rebel Satoshi’s Presale excitement
- admin
- April 23, 2024
- 0
The content and materials featured on this page are for educational purposes only. Top 10 altcoins like Solana (SOL) and Cardano (ADA) have experienced significant […]