Europe is solidifying its position as a global leader in the realm of crypto-friendly banking, with over 60 institutions now offering a range of cryptocurrency services.
This surge, highlighted by industry experts like Circle senior director of EU Policy & Strategy Patrick Hansen, marks a significant departure from the more cautious approach seen in other regions, particularly the United States.
“Europe is home to the largest number of crypto-friendly banks in the world,” Hansen stated in a recent X post, emphasizing the continent’s proactive stance.
He further noted that this leadership extends to capital market players, where European institutions are “probably a couple of years ahead.”
The same is true for capital market players too – where European institutions are probably a couple of years ahead.
Example: Deutsche Boerse, the main German stock exchange, will provide $btc and $eth custody.
Plus, both in the EU and in Switzerland, you can now launch fully… https://t.co/7VGXOYuFaW
— Patrick Hansen (@paddi_hansen) March 20, 2025
Europe’s Crypto Banking Outpaces Global Peers
According to Coincub’ latest research, 63 European banks currently offer crypto services – including trading, custody, staking, payments, stablecoins, and banking services for crypto companies – far outpacing other regions.
Standard Chartered UK, BBVA Switzerland, and Barclays UK are major crypto-friendly banks that made massive investments in the crypto landscape last year, as per the report.
Europe leads the world with 63 banks offering crypto-related services. Source: Coincub
This dominance, as Hansen pointed out, is not a matter of chance. It is the result of deliberate regulatory efforts by the European Union to foster competition and innovation within the financial sector.
“It is not because European banks are more risk-taking or innovative, but rather because EU regulations in payments and crypto are creating legal clarity, and, importantly, actively encouraging, not curtailing, competition and innovation in payments,” Hansen explained in his blog article. “It is because non-banks have been allowed to provide e-money and payments services and are seen as an integral building block to preserve innovation and competition in finance.”
Crypto-Friendly Regulation Is a European Advantage
While the US Office of the Comptroller of the Currency (OCC) has only in March this year issued guidance allowing banks to engage in crypto services like custody and stablecoin operations, European banks have been building their infrastructure and expertise for years.
BBVA Spain’s recent announcement that its customers will soon be able to buy, sell, and manage Bitcoin and Ether directly through the bank’s app or Deutsche Börse, Germany’s main stock exchange, which plans to provide custody services for BTC and ETH are just the latest examples of this trend.
Europe’s leading banks, including several Global Systemically Important Banks (G-SIBs), have invested heavily in developing the necessary infrastructure and securing regulatory approvals.
This EU’s proactive approach, dating back to the E-Money Directive (EMD) in 2000 and further strengthened by the Payment Services Directive (PSD) and PSD2, has created a regulatory environment that encourages banks to open accounts for non-bank payment service providers. This has resulted in a more inclusive and competitive financial landscape, stated Hansen.
The implementation of the Markets in Crypto-Assets (MiCA) regulation is further paving the way for growth by providing a clear regulatory framework for banks to engage with cryptocurrencies.
EU’s Proactive Approach
Looking ahead, the EU Commission’s proposals to allow non-bank payment service providers direct access to central bank payment systems, such as SEPA, and to safeguard consumer funds directly with central banks, signal a continued commitment to innovation.
The recent passage of the Instant Payments Regulation (IPR) and the European Central Bank’s subsequent policy on access for non-bank payment service providers further solidify this direction.
“We will see several non-bank PSPs, including stablecoin issuers, settling SEPA payments directly through their respective central bank,” said Hansen, adding:
“It is therefore hardly a surprise that Europe’s banks seem to be more open towards regulated crypto firms. Rather, it is the result of an ongoing, +20 years old regulatory push to create clarity, competition and innovation in the EU financial landscape.”
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