On January 2nd, Garanti BBVA Kripto, the cryptocurrency custody platform under Turkey’s fifth-largest bank, Garanti BBVA, announced that it would expand its offerings to provide cryptocurrency trading services to the public.
Growing Crypto Landscape in Europe
This development, reported by CoinDesk, marks an important step forward for European banks entering the cryptocurrency sector. The service, which is being implemented in collaboration with Spanish crypto exchange Bit2Me, signals the continued acceleration of crypto adoption within Europe’s banking landscape.
Garanti BBVA Kripto has been advertising crypto trading services on its website since January 2024. However, the service was previously limited to a pilot phase and was not accessible to the general public.
With the platform now fully launching, it opens the door for more customers to engage with digital assets in Turkey. BBVA, which holds 86% of Garanti BBVA’s shares, has been leveraging Turkey’s relatively relaxed regulatory environment to roll out its crypto services earlier than many of its European counterparts.
MiCA Regulations in the EU
The move comes as part of a broader trend among European banks to explore cryptocurrency services, especially with the full implementation of the European Union’s Markets in Crypto-Assets Act (MiCA) on December 30, 2024.
MiCA provides a comprehensive regulatory framework for financial institutions operating in the crypto space, offering clarity on the rules governing cryptocurrency services.
The legislation is expected to give a boost to crypto adoption across Europe, with many banks set to follow Garanti BBVA’s lead in launching crypto trading services.
According to Abel Peña, head of sales at Bit2Me, more European banks are expected to offer cryptocurrency spot trading services to their customers starting in the first quarter of 2025.
Peña mentioned that Bit2Me is already in close communication with over 50 financial institutions, with several planning to launch their crypto services shortly.
Stronger Regulatory Support
With $857 billion in assets in 2023, BBVA is the second-biggest bank in Spain after Banco Santander. The bank’s focus on cryptocurrency is a clear indication of its commitment to embracing digital assets, and Garanti BBVA Kripto’s public rollout is just one example of how financial institutions are adapting to the rapidly changing crypto landscape.Â
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As MiCA regulations are now in full force, European banks are set to secure the necessary approvals from local regulators to offer services related to popular cryptocurrencies like Bitcoin, Ether and others.
As MiCA establishes a clearer framework for cryptocurrencies in Europe, its impact is already being felt. The new regulation aims to tighten control over stablecoins, which has led to significant changes in the market.
Tether USDT Ban in Europe
One of the most notable shifts occurred in December 2024 when Tether, the world’s largest stablecoin, saw a decline of $2 billion in its market capitalization. This drop was linked to challenges posed by MiCA, which requires stablecoin issuers to meet stringent licensing requirements to operate within the European Union.
Tether has yet to meet the necessary MiCA requirements, which has prompted several European exchanges, including major platforms like Coinbase, to begin delisting Tether’s USDT stablecoin in anticipation of the regulatory changes.
As MiCA continues to reshape the European crypto landscape, the future of stablecoins and their role in crypto markets will become clearer, with many industry players bracing for the tightening regulations.
The convergence of increasing crypto services by traditional banks and the implementation of MiCA is set to redefine the cryptocurrency landscape in Europe.
As more institutions integrate crypto offerings, the regulatory clarity provided by MiCA will likely encourage further adoption, making digital assets more accessible to a broader customer base.
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