Market Segmentation
According to analysts from BestChange.com, the new EU rules create a clear division in crypto trading: EU countries will trade cryptocurrencies paired with USDC, while the rest of the world will continue using trading pairs with USDT.
EU citizens may face limited trading access, such as low liquidity and fewer investment options. This affects the rest of the market less, although it changes how investors from different regions approach trading.
Secondary Sanctions
New secondary sanctions targeting services for Russian and Belarusian citizens by European crypto projects are expected. Payeer, for example, was recently fined €9.3 million for providing crypto services to Russian citizens.
Experts from BestChange.com think that similar fines could happen. Many services in this market segment are registered in Baltic countries, as they cannot legalize their business in Russia. Consequently, dozens of EU-based crypto companies working with Russian clients may face similar penalties. This sent a clear signal to such companies.
These practices will likely move to different jurisdictions. Currently, Georgia, Kazakhstan, and the UAE are more flexible regarding the crypto industry.
Emergence of Euro-Pegged Stablecoins
More stablecoins pegged to the Euro will appear on the market. Previously, Tether’s stablecoins dominated operations. After being forced out of the EU market, a supply vacuum emerged, which other companies may fill.
This shift is already happening. Recently, Circle introduced EURC, a new Euro-pegged crypto asset. This trend will likely continue, and most trades for EU citizens will involve new stablecoins rather than those pegged to the US dollar.
Impact on Other Segments
The new rules do not directly affect airdrops, utility project tokens, NFTs, DeFi, and DAO.
However, the current trend may extend to these segments, posing new risks for investors. Many global crypto companies are reconsidering their operating rules and user access based on residence.
BestChange.com analysts conclude that despite the absence of direct restrictions, many large projects are already limiting EU citizens’ participation in questionable areas. All major exchanges have suspended EU citizens’ access to USDT trading pairs. Bitstamp announced the delisting of EURT, a Euro-pegged stablecoin from Tether. Some recent airdrops also became unavailable for EU residents.
Crypto companies are still clarifying what they can and cannot do. Meanwhile, they are preventively avoiding anything potentially problematic. Law-abiding EU citizens become victims when access to profitable and liquid assets is restricted.
