Europe appears to be leading the way in the financial industry’s transition to crypto. Institutions throughout Europe are responding to the United States’ crackdown on crypto-friendly banks by enhancing their efforts to foster a more hospitable environment for digital assets.
According to recent data, Europe is now home to over 50 institutions that provide crypto services, a figure that surpasses that of both Asia and North America.
Regulations Provide A Clearer Path
The regulatory clarity of Europe is a significant factor contributing to its increasing involvement in crypto banking. With the implementation of the Markets in Crypto-Assets (MiCA) framework by the European Union, enterprises involved in cryptocurrencies are subject to clear laws. This gives organizations the confidence to offer services without worrying about unforeseen legal changes.
On the other hand, the US has taken a different approach. The recent closures of Silvergate Bank and Signature Bank, two banks known for their backing of cryptocurrency companies, have left a hole in the American market. Currently, many US-based cryptocurrency companies are looking to other nations for financial solutions.
Europe is leading the world in terms of crypto-friendly banks 🏦
While the U.S. OCC just issued guidance allowing banks to engage in crypto services such as custody or stablecoin services, European banks are already years ahead.
BBVA Spain is the latest example, announcing… pic.twitter.com/2FRr38FA2k
— Patrick Hansen (@paddi_hansen) March 11, 2025
Europe is leading the globe in terms of crypto-friendly banks, said Patrick Hansen, EU Strategy and Policy Advisor at Circle, in a recent X post. Europe has quietly established itself as the unchallenged leader in the digital currency market, while major powers like the United States try to gain a firm presence in the field through banking partnerships.
Numbers Show Europe Pulling Ahead
Data from Coincub indicates that there is an increasing level of division. Asia has only 24 banks that support Bitcoin and other related assets, while Europe has 55 banks that do. As regulatory pressures intensify, North America, which was previously a hub for Bitcoin-friendly banks, is now lagging behind.
Lack of trustworthy banking partners is making US crypto companies struggle with capital management and payment processing. Some have already started moving their business to areas with better laws. Europe’s approach, stressing control over limitation, is proving appealing.
Traditional Institutions Get Involved
Established financial institutions in Europe are also getting into the mix. A major player in the financial markets, Deutsche Boerse’s Clearstream is now developing services for bitcoin custody and settlement. This move indicates that traditional financial institutions are looking to serve institutional investors since they understand the possibilities of digital assets.
As of today, the market cap of cryptocurrencies stood at $2.63 trillion. Chart: TradingView
Meanwhile, American institutions continue to exhibit caution. Due to regulatory scrutiny, numerous individuals are refraining from investing in digital currency. The result? A growing disparity between the United States and Europe in terms of the number of financial institutions that are willing to provide services to the industry.
The Road Ahead For Europe
Europe is becoming a center for digital banking as more institutions get involved and regulations become clearer. On the other hand, the US has yet to lay down a clear framework on how banks should deal with digital assets. If policies don’t change, American companies may continue to be behind their European competitors.
Featured image from Gemini Imagen, chart from TradingView
