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.
EU securities watchdog: 10 exchanges control 90% of cryptocurrency trading
