Chainalysis Report: Crypto Business Services Thriving in Parts of Europe

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Central, Northern, and Western Europe (CNWE) has emerged as the world's second-largest cryptocurrency economy after North America. Between July 2023 and June 2024, CNWE recorded $987.25 billion in on-chain value, accounting for 21.7% of global transaction volume.

Key Growth Trends in CNWE's Crypto Economy

Bitcoin Dominates Retail and Professional Transactions

For transfers below $1 million (including retail <$10K and professional $10K-$1M tiers):

Stablecoins Outperform North America

CNWE's stablecoin adoption shows unique regional patterns:

"Our fiat business exists to serve our stablecoin platform. We see them as coexisting — we need to bridge the gap with the fiat world."
— Chris Harmse, Co-founder & CCO at BVNK

Commercial Services Flourishing in the UK

The UK drives CNWE's second-largest commercial services market globally, with 58.4% year-over-year growth.

Key Stablecoin Use Cases in B2B Services:

  1. Settlement: Faster invoice processing for merchants
  2. Payments: Crypto gateways for consumer transactions
  3. Payouts: Cross-border payroll solutions

BVNK's platform data reveals:

Emerging applications include:

Regional Spotlight: Malta's Crypto Payments

Payhound, a Maltese crypto processor serving the iGaming industry:

DeFi Growth Ranks 4th Globally

CNWE's decentralized finance activity reached $270.5 billion in inflows:

The Future of Crypto in CNWE

MiCA Regulation Impact

The EU's Markets in Crypto-Assets (MiCA) framework:

Industry perspectives:

"Regulatory clarity enables traditional institutions to confidently engage with digital assets."
— Sophie Bowler, Group CCO at Zodia Custody

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FAQ

Q: Why are stablecoins so popular in CNWE?
A: They optimize euro-denominated crypto-fiat transactions while providing stability amid currency fluctuations.

Q: How does UK crypto regulation differ from MiCA?
A: The UK is developing parallel frameworks expected to align closely with MiCA by 2025.

Q: What's driving DeFi growth in CNWE?
A: Decentralized exchanges account for over 60% of activity, with brief NFT and bridge surges.

Q: Which industries lead crypto adoption?
A: Fintech, iGaming, and cross-border payment providers show strongest traction.

Q: How large are typical B2B crypto transactions?
A: Commercial payments average $100K+, primarily for international trade settlements.

Q: Will MiCA affect non-EU businesses?
A: Yes — any firm serving EU customers must comply, creating global ripple effects.