The Eurozone has been a lagger in crypto trading. But it may be sitting on a goldmine - an untapped demand for crypto trading against the Euro. For now, only services like Bitpanda, the Kraken exchange, and Litebit.eu, offer a suitable fiat ramp for trading and cashing out. CoinFalcon is yet another European exchange that launched during the crypto boom in 2017, offering access to buying crypto coins through a simple SEPA bank transfer. Recently, CoinFalcon also added Tether (USDT) pairs, to boost liquidity as direct buying is still relatively slow.
But now, Binance has obtained a license in Malta, and may become a fully legalized cash-to-crypto exchange. The move caused the price of Binance Coin (BNB) to appreciate over the weekend, to $16.89, adding more than 15% in the past seven days. Some believe the addition of fiat trading would lift the price of BNB. Right now, BNB can only be acquired through another crypto coin.
https://twitter.com/CryptoMedicated/status/1007690213290921986
Despite the boom in crypto coins and the general crypto enthusiasm in Europe, the EUR currency currently covers just 1.4% of Bitcoin trading, while the Japanese Yen has once again expanded its influence to 66%. The reason for this is the number of Japanese exchanges that are legalized, or in a process of legalization, in addition to the general popularity of Bitcoin. However, despite the positive legal framework, Euro-based trading has lagged. The exchanges that offer fiat buying are often limited in volumes, and subject their users to very strict KYC procedures.
Euros Ready to Flow Into the Market?
The Eurozone has Euros to spare, after a decade of quantitative easing from the European Central Bank. And while crypto coins are in a bear market, the extra liquidity may find its way onto crypto exchanges. Some believe the presence of a fiat on-ramp may save some altcoins from the drop in Bitcoin prices, and open up separate channels for speculation.
https://twitter.com/oih_ana/status/1007714364701409280
The Binance trading should happen against actual Euros, not the EURT digital asset. The Tether-issued, ERC-20 token to represent Euros has been relatively inactive. In the past week, the supply has increased by 100 million to 50 million EURT tokens held in the minting wallet. But where those volumes would go is anyone’s guess. For now, EURT volumes are also lagging, and the asset is not yet listed on CoinMarketCap.
For now, Europe presents a paradox - with a lot of coins and projects based there, but a relatively low interest in trading against the Euro, compared to other pairings. Binance may start changing that balance.
This article appeared first on Cryptovest
