Circle senior director of coverage and technique Patrick Hansen stated over 50 European banks already supply crypto-related companies. The Circle Govt shared this reality whereas reacting to the current steering by the US Workplace of the Comptroller of Foreign money (OCC).
The OCC just lately launched an announcement saying that banks can now have interaction in some crypto companies, together with stablecoins and crypto custody. Whereas many have welcomed the transfer as an finish to Operation Chokepoint 2.0, Hansen famous that US banks are behind their European counterpart.
In line with Hansen, European banks have spent the previous few years constructing their infrastructure and experience to serve the crypto trade and so they already supply buying and selling, staking, custody, stablecoins, funds, and banking.
He stated:
“Europe’s banks—together with a number of G-SIBs (World Systemically Vital Banks)—have spent years constructing infrastructure, growing experience, and securing regulatory approvals.”
Information from Coincub helps Hansen’s assertion. In line with a report launched final yr, Europe, together with the UK, had probably the most crypto-friendly banks, with 55. Asia had 24, whereas North America had 23.
Hansen additionally listed a number of European banks which can be already providing crypto companies. These embrace BBVA, which just lately bought regulatory approval in Spain to supply its purchasers crypto buying and selling and custody of Bitcoin and Ethereum.
A number of notable banks, together with Societe Generale, Santander, Commonplace Chartered, BNP Paribas, and Deutsche Financial institution, additionally supply crypto-related companies.
European Banks with Crypto Providers (Supply: Patrick Hansen)
Nonetheless, the Circle government famous that there have been some adjustments to that checklist. Fidor Financial institution has already stopped working, whereas SEBA is now often called AMINA Financial institution and not serves retail. Nonetheless, new banks providing crypto companies have additionally emerged in Europe. These embrace Commerce Republic in Germany, Bison Financial institution in Portugal, and Banca Intesa in Italy.
Consultants say EU guidelines answerable for Europe will lead crypto-banking for years
Whereas the current adjustments in US banking coverage may result in extra US banks embracing crypto, Hansen expects Europe will stay forward for some years. He famous that this is likely one of the few instances the place Europe has a first-mover benefit and the Market in Crypto Property (MiCA) rules provide an opportunity to cement that place.
This view aligns with Hansen’s earlier opinion, through which he attributed the excessive stage of entry to banking for crypto companies to regulatory readability within the area. He cited a number of EU rules, together with the E-Cash Directive 2000, the Cost Service Directive 2007, and the MiCA in 2024, as contributing to this readability.
He wrote:
“It isn’t as a result of European banks are extra risk-taking or revolutionary, however slightly as a result of EU rules in funds and crypto are creating authorized readability, and, importantly, actively encouraging, not curbing, competitors and innovation in funds.”
Nonetheless, the improved regulatory readability within the US may trigger Europe to lose this benefit, particularly as each areas transfer in several instructions extra just lately
Since President Donald Trump’s administration started on January 20, there have been sizable adjustments within the US regulatory method together with permitting crypto and banning central financial institution digital foreign money (CBDC). On its half, the European Central Financial institution (ECB) needs to introduce the digital Euro by October 2025.
