The Making Of Europe As Cryptocurrency Capital Of The World

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Cryptocurrency trading and investing awareness are sweeping around the world. And the numbers, because they don’t lie, tell the story. The global cryptocurrency market was valued at $856 billion in 2018 and is on track to top $1.5 trillion in 2024. That reflects a 12% compound annual growth rate.

You would expect the cryptocurrency market growth even to accelerate as the Covid-19 economic shocks drive mainstream institutional investors’ move to try non-traditional digital assets like bitcoin to hedge their portfolios in these uncertain times.

Europe region has taken the lead as the largest crypto market in the world. According to a 2017 Cambridge University study, Europe has the most cryptocurrency exchanges, followed by Asia-Pacific.

Awareness And Acceptance of Crypto Opportunities Fueling Rapid Growth

Crypto technology has economic liberating potential for consumers and investors. Businesses and consumers can make considerable savings in monetary transactions with cryptocurrencies. And investors can make huge returns with small capital with crypto investing than they can in stocks or bond markets. Only a tiny group understood this a decade ago when bitcoin came to the scene.

But things have changed for the better in recent years. More and more people are embracing crypto transactions and investing. Indeed, crypto acceptance in Europe and other parts of the world has spiked in recent years as people realize that cryptocurrency transactions can be faster and cheaper. Moreover, crypto investing provides a real path to financial independence, something that most everyday people seek.

Barriers to Entry to Crypto Investing Have Been Lowered 

Innovation has played a central role in fueling the rapid growth of the crypto industry. Bitcoin is the only cryptocurrency people knew, there are now more than 5,000 cryptocurrencies out there, hence broadening selection for consumers and investors. Moreover, the hundreds of cryptocurrency exchanges and marketplaces that have emerged in recent years have made crypto transactions and investing even more accessible. 

And crypto exchanges from the Commonwealth of Independent States (CIS) region have done a great job in lowering the barriers to cryptocurrency participation for everyday people, hence fanning the rapid uptake of crypto investing across Europe and beyond.

For example, CIS crypto exchanges and marketplaces have been adding support for more local fiat currencies and multiple languages. It is expanding the room for a broader investor base to join the cryptocurrency world and start its financial independence journey. Many CIS crypto exchanges have also helped increase trust in cryptocurrencies by offering improved services and making transparency and security front and center in their operations.

Take WhiteBIT, for instance. Based on Estonia’s crypto-friendly country, WhiteBIT is a regulated exchange that has emerged as one of the top crypto-to-crypto and crypto-to-fiat exchanges from the CIS region.  The platform is accessible through smartphone apps on Android and iOS and websites across more than 190 countries. Besides English, WhiteBIT supports several other languages, including Russian and Japanese. 

WhiteBIT supports crypto trading in a range of fiat currencies, including US dollar, euro, Russian ruble, Ukrainian hryvnia, and Turkish lira. WhiteBIT users can make accessible more than 150 trading pairs. WhiteBIT’s most persuasive appeals are competitive fees and security. The platform has taken steps to ensure that customer funds remain secure even in the event of a hacking incident. It has achieved this by ensuring that more than 96% of its digital assets are kept in a cold wallet. WhiteBIT recently added a margin trading terminal with up to 25x leverage, the highest in the CIS region. The other major crypto exchanges from the CIS region battling it out with WhiteBIT Bitmex, Bitfinex, Bybit, FTX, and Deribit.

CIS Countries Unlocking Crypto Industry Potential With Friendly Regulations  

The rapid development of the crypto industry in Europe can be credited to what is happening in the CIS region. Notably, while the European Union economic bloc is still grappling with how to proceed with regulating the crypto market, CIS countries are leading the way in regulating the emerging industry. Indeed, dozens of cryptocurrency exchanges and marketplaces have emerged in the Eurasia region thanks to the favorable crypto regulations in CIS and Eastern Europe.

Reporting last year about how small countries in the eastern part of Europe are leading the way with regulations to encourage the growth of cryptocurrency industry, Reuters stated: “…cryptocurrencies represent a rare chance for these states or territories to grab a slice of an emerging market, potentially attracting investment and creating jobs.”

Countries like Kazakhstan have taken steps to create an enabling environment for crypto technologies and innovations. In 2017, the Kazakhstan government formed a working group that included accounting and consulting giant Deloitte to formulate progressive crypto regulations to support the development of the crypto market in the country. Draft proposals for crypto market regulation in Kazakhstan were released this year.

Crypto Exchanges Doing Their Part in Driving Industry Growth

In addition to crypto-friendly regulations, the large population and deepening internet access have also contributed to the fast-growth of the crypto industry in the Eurasia region. 

Moreover, regulated exchanges have helped overcome concerns about cryptocurrencies being used for illicit activities such as money laundering, tax evasion, and terrorism financing. Additionally, the steps that exchanges have taken to enhance platform transparency and security are fueling the mass adoption of crypto investing in the Eurasia region.

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