SINGAPORE, March 18, 2025 /PRNewswire/ -- HTX, a leading crypto exchange, has been ranked as the "Top 3 Exchanges for EUR-Stablecoin Trading Activity" in a recent CoinDesk report titled "MiCAR: The Institutional Playbook for Europe's Digital Asset Market [https://data.coindesk.com/reports/micar-the-institutional-playbook-for-europes-digital-asset-market]". The report explores key trends shaping the European digital asset market with the implementation of Markets in Crypto-Assets Regulation (MiCAR) and highlights that HTX achieved a monthly average EUR-stablecoin trading volume of EUR48 million, with a notable volume of EUR33 million in November 2024, ranking third following Binance and Coinbase.
This surge in EUR-denominated trading coincides with the regulatory shifts. Regulatory clarity has become a key driver of institutional adoption and market confidence. The full rollout of MiCAR represents a major milestone for the industry, offering a unified framework that spans across 27 European Union (EU) member states. While MiCAR streamlines compliance and fosters innovation, it also brings along complex challenges that exchanges must navigate. HTX Ventures explores both the opportunities and hurdles that come with this landmark regulation.
Alec Goh, Head of HTX Ventures, said, "The implementation of MiCAR is a major step in the right direction for the crypto industry, providing much-needed regulatory clarity and fostering an environment conducive to institutional adoption. As jurisdictions worldwide become more crypto-friendly, a united framework like MiCAR will accelerate innovation while ensuring robust compliance. At HTX Ventures, we see this as an opportunity to drive the development of on-chain compliance tools, support the emergence of compliant DeFi solutions, and bridge the gap between traditional finance and digital assets."
Opportunities:
-- Unified Regulatory Framework Reduces Costs and Boosts Market
ConfidenceMiCAR covers all 27 EU member states through a "single
license" approach, enabling exchanges to significantly reduce compliance
costs across borders. This unified regulatory framework provides a clear
and stable regulatory environment for the market, increasing confidence
and participation among institutional investors while positioning Europe
to becoming the world's largest compliant digital asset market.
-- Technological Innovations Drive On-Chain Compliance ToolsTo meet MiCAR's
stringent anti-money laundering (AML) and reserve monitoring
requirements, exchanges can actively explore compliance tool
innovations, including:
-- Using oracle networks to modularize AML rules and reserve
monitoring, executing them on-chain for real-time data transparency.
-- Adopting zk-SNARKs to build an on-chain central platform for
regulatory data, enabling transaction data desensitization to
balance regulatory transparency with user privacy.
-- Leveraging account abstraction technology (ERC-4337) to integrate
KYC processes into non-custodial wallets, lowering barriers for
traditional financial institutions to access DeFi.
-- New Opportunities for the Convergence of Traditional and Crypto
AssetsWith platforms such as Coinbase launching securitized tokens,
exchanges can introduce real-world asset (RWA) trading. This includes
income-based stablecoins backed by US stocks or Treasuries, enabling
users to leverage assets like USDT for multi-asset allocation and global
liquidity matching.
Challenges:
-- High Costs and Technical Complexity of ComplianceMiCAR imposes strict
requirements on stablecoin issuers and Crypto Asset Service Providers
(CASPs), including adequate reserves, regular audits, and robust
anti-money laundering measures. Exchanges must invest significantly in
R&D to integrate compliance tools, data desensitization techniques, and
on-chain regulatory platforms without compromising market fluidity.
-- Uncertainty in the Dynamic Policy Environment With regulatory policies
evolving rapidly, exchanges must establish multi-chain testing
environments and collaborate with regulatory-friendly regions (e.g.,
Lithuania, Malta) for cross-border stress tests and regulatory scenario
simulations. This requires continuous investment, with risks at the
policy interpretation and implementation levels.
-- Security Risks and Stringent Custody Requirements Following high-profile
incidents like FTX, MiCAR has introduced rigorous digital asset custody
requirements, mandating bank-level security measures to prevent hacking
and asset loss. As DeFi integrates with traditional financial
regulations, exchanges must address both technical vulnerabilities and
evolving security risks.
HTX Ventures firmly believes that under a clearer regulatory framework such as MiCAR, exchanges can achieve a win-win situation through technological innovations and global asset allocation, balancing compliance with market innovation. Moving forward, the firm will continue to leverage its insights and expertise to actively explore on-chain compliance tools, expand RWA trading, and build a dynamic testing environment, navigating regulatory complexities and ensuring that crypto innovation remains aligned with long-term institutional adoption and market sustainability.
- End -
About HTX Ventures
HTX Ventures, the global investment division of HTX, integrates investment, incubation, and research to identify the best and brightest teams worldwide. With more than a decade-long history as an industry pioneer, HTX Ventures excels at identifying cutting-edge technologies and emerging business models within the sector. To foster growth within the blockchain ecosystem, we provide comprehensive support to projects, including financing, resources, and strategic advice.
HTX Ventures currently backs over 300 projects spanning multiple blockchain sectors, with select high-quality initiatives already trading on the HTX exchange. Furthermore, as one of the most active FOF (Fund of Funds) funds, HTX Ventures invests in 30 top global funds and collaborates with leading blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to jointly build a blockchain ecosystem. Visit us here.
[https://www.htx.com/ventures]Feel free to contact us for investment and collaboration at VC@htx-inc.com [mailto:VC@htx-inc.com].
About HTX
Founded in 2013, HTX has evolved from a virtual asset exchange into a comprehensive ecosystem of blockchain businesses that span digital asset trading, financial derivatives, wallets, research, investments, incubation, and other businesses. As a world-leading gateway to Web3, HTX harbors global capabilities that enable it to provide users with safe and reliable services. Adhering to the growth strategy of "Global Expansion, Thriving Ecosystem, Wealth Effect, Security & Compliance", HTX is dedicated to providing quality services and values to virtual asset enthusiasts worldwide.
For more information on HTX, please visit the HTX Square [https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fsquare.htx.com%2F&data=05%7C02%7CJocelyn.Ke%40ruderfinn.com%7C8960e7c4d59e4a1d4e5408dd1388cc7c%7C782c7f7b9da44a708f71e4350d47d565%7C0%7C0%7C638688200484207511%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=eci6HMI%2FOqHfhCz9YhSSBdAsFPizr4QliJp7%2Fp5r81I%3D&reserved=0], or https://www.htx.com/ [https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.htx.com%2F&data=05%7C02%7CJocelyn.Ke%40ruderfinn.com%7C8960e7c4d59e4a1d4e5408dd1388cc7c%7C782c7f7b9da44a708f71e4350d47d565%7C0%7C0%7C638688200484223551%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=llUFam%2FZNHqtjpkUMkK009JY%2FIu%2BN60BQ1bGOuQmyAU%3D&reserved=0], and follow X [https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftwitter.com%2FHTX_Global%3Fref_src%3Dtwsrc%255Egoogle%257Ctwcamp%255Eserp%257Ctwgr%255Eauthor&data=05%7C02%7CJocelyn.Ke%40ruderfinn.com%7C8960e7c4d59e4a1d4e5408dd1388cc7c%7C782c7f7b9da44a708f71e4350d47d565%7C0%7C0%7C638688200484237017%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=K%2ByEsa4Cg7H2JIVI0DZ%2B9%2FI3FxacciH3t4Bu6d9ctx0%3D&reserved=0], Telegram [https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Ft.me%2Fhtxglobalofficial&data=05%7C02%7CJocelyn.Ke%40ruderfinn.com%7C8960e7c4d59e4a1d4e5408dd1388cc7c%7C782c7f7b9da44a708f71e4350d47d565%7C0%7C0%7C638688200484250433%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=TGnVcirbgYxeq%2Fzclbth0Sls32MR0fjZkjyiCSchtro%3D&reserved=0], Discord [https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdiscord.com%2Finvite%2Fhtx-official&data=05%7C02%7CJocelyn.Ke%40ruderfinn.com%7C8960e7c4d59e4a1d4e5408dd1388cc7c%7C782c7f7b9da44a708f71e4350d47d565%7C0%7C0%7C638688200484263526%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=4S0mU%2Bz1pBSh8Cas%2FeZR04WbVIPRda%2Fa2s81FSkCMyw%3D&reserved=0]. For further press enquiries, please contact glo-media@htx-inc.com [mailto:glo-media@htx-inc.com].
View original content:https://www.prnewswire.co.uk/news-releases/htx-ventures-striking-a-balance-between-compliance-and-innovation-in-a-shifting-regulatory-landscape-302404319.html [https://www.prnewswire.co.uk/news-releases/htx-ventures-striking-a-balance-between-compliance-and-innovation-in-a-shifting-regulatory-landscape-302404319.html]
HTX Ventures
