Homebreadcrumb separatorPress Release: “Crypto is Dead in Europe” – Coincub Report Reveals Alarming Decline in the Continent’s Blockchain Ecosystem

Press Release: “Crypto is Dead in Europe” – Coincub Report Reveals Alarming Decline in the Continent’s Blockchain Ecosystem

Dublin, Ireland – March 11, 2025 – Coincub, a leading authority in crypto industry analysis, has released a groundbreaking report detailing the rapid decline of Europe’s crypto ecosystem. Once a blockchain innovation hub, Europe faces a stark reality: high compliance costs, regulatory stagnation, and dwindling venture capital have left the continent struggling to compete globally.

Key Insights from the Report

  • Massive VASP Closures: By June 2025, 75% of Europe’s 3,167 Virtual Asset Service Providers (VASPs) are projected to lose registration status due to the European Securities and Markets Authority’s (ESMA) grandfathering period under MiCA.
  • MiCA Licensing Bottleneck: Despite being hailed as a unifying regulatory framework, only 12 Crypto Asset Service Providers (CASPs) and 10 Electronic Money Token (EMT) issuers have successfully obtained licenses under MiCA.
  • Soaring Compliance Costs: Licensing and compliance costs have surged sixfold—from approximately €10K to €60K—forcing startups to shut down or relocate to friendlier jurisdictions like Canada or Asia.
  • Debanking Crisis: Only 14% of European crypto startups have opened bank accounts without facing closures, as commercial banks continue restricting services for the sector.
  • Job Market Collapse: Blockchain-related job postings in Europe have plummeted by 90%, from over 100,000 in 2022 to just 10,000 today, contributing to a severe talent exodus.
  • Venture Capital Exodus: EU venture funding for crypto startups has dropped by 70% since its $5.7 billion peak in 2022, while regions like the U.S. and Asia show signs of recovery.
  • Talent Drain: Despite nearly 600 universities offering blockchain courses, graduates are leaving Europe en masse for markets with better opportunities and regulatory clarity.

The Regulatory Burden

The Markets in Crypto-Assets (MiCA) regulation was intended to harmonize crypto laws across Europe’s 27 member states but has inadvertently created barriers for startups and small businesses. Licensing timelines have tripled, compliance costs have skyrocketed, and regulatory complexity has stifled innovation. While large global exchanges benefit from MiCA’s single-market access, smaller players struggle to survive under its stringent requirements.

“MiCA has inadvertently become a nightmare for European VASPs,” said Tomasz Baliński, President of Complywiser. “While it provides clarity for large players, it has made survival nearly impossible for startups due to high costs and complex procedures.”

Banking Challenges

Europe’s debanking crisis has further compounded the sector’s struggles. Many crypto firms report being unable to open or maintain bank accounts due to shadow bans by commercial banks influenced by the European Central Bank’s cautious stance on crypto. This lack of access to basic financial services is crippling operations across the industry.

A Shrinking Ecosystem

The report also highlights how Europe’s share of global crypto adoption is shrinking compared to regions like Asia and North America. The U.S., under recent pro-crypto reforms, now leads in Bitcoin trading volume and stablecoin adoption, while Asia continues to attract talent and investment through supportive policies.

Broader Economic Implications

Europe’s challenges in the crypto sector reflect deeper economic issues: high energy costs, fragmented capital markets, and slow legislative processes discourage innovation across emerging technologies like blockchain and AI.

“Unless Europe addresses these systemic issues quickly, it risks permanent irrelevance in the global digital asset economy,” warned Eric Demuth, CEO of Bitpanda.

A Call for Reform

Coincub’s report urges policymakers to act decisively by reforming MiCA implementation processes, improving bank access for crypto firms, and fostering a more innovation-friendly environment. Without these changes, Europe risks losing its position as a leader in financial innovation.

For more details on Coincub’s findings or to access the complete report data or media inqueries, please get in touch with us at [email protected]