In the world of crypto exchanges that support the euro, around 15 major platforms exist, but only a handful have managed to amass significant trading volumes in this particular currency. The dominant players in this space include Bitstamp, Bitvavo, Coinbase, Kraken, and the world’s largest crypto exchange, Binance. In 2023, Kraken claimed the top spot with a cumulative trading volume of €25 billion, followed closely by Binance which previously held the largest market share. However, due to legal issues, Binance witnessed a decline of 18% in its share of the spot market among centralized trading platforms, according to Kaiko Research.
Bitcoin emerged as the preferred choice among traders using euros in 2023, experiencing a significant price surge towards the end of the year. The trading volume of Bitcoin in Europe surpassed 37 billion euros, overshadowing ETH (15 billion euros) and XRP (9.5 billion euros), as reported by Kaiko analysts.
Kaiko analysts have also noticed a correlation between trading volume in euros and the number of trading pairs available. Both Kraken and Bitvavo offer more than 200 trading pairs with various European currencies, which has strengthened their position in Europe. On the other hand, international exchanges like Bitflyer and Bybit primarily focus on the Asia-Pacific region.
Europe is witnessing a growing trend in the number of crypto exchanges registering their headquarters in the region. This trend is expected to continue in 2024, fueled by the introduction of a clear legal framework – the European Union Cryptocurrency Act (MiCA).
Recently, EU deputies announced their plans to tighten the rules for verifying clients of crypto services as a measure to combat money laundering. In addition to verifying customer information, industry companies will also be required to report any suspicious activity.