Europe’s Crypto Shake-Up: New Stablecoins, German Crackdowns, and More

This week’s European crypto scene saw several significant developments, illustrating how Europe balances innovation and regulation in the blockchain space. One highlight is Societe Generale’s launch of its EUR CoinVertible (EURCV) stablecoin on the Solana blockchain. In addition, Germany shut down 47 crypto exchanges due to violations related to money laundering.

On September 20, 2024, Societe Generale's SG-FORGE introduced the EURCV stablecoin on Solana to improve transaction speed and reduce fees. This move aims to boost the use of decentralized applications for both institutional and retail users, offering secure and cost-efficient trading of the stablecoin. Solana’s ability to process tens of thousands of transactions per second and its low fees made it an appealing choice for Societe Generale, helping liquidity provision and DeFi expansion.

Jean-Marc Stenger, CEO of SG-FORGE, emphasized that Solana’s speed and the security of the EURCV stablecoin will create new opportunities for retail users and institutions alike in decentralized finance.

Meanwhile, Germany’s crackdown on crypto exchanges comes as part of its efforts to tackle money laundering. On September 19, 2024, Germany's Federal Criminal Police Office (BKA) and the Central Office for Combating Internet Crime (ZIT) shut down 47 exchanges that failed to comply with Know-Your-Customer (KYC) regulations. These platforms allowed anonymous transactions, enabling criminals to hide their identities and launder funds. Germany’s action signals increased scrutiny of the crypto sector across Europe, particularly after the introduction of the Markets in Crypto-Assets Regulation (MiCA).

In Switzerland, SIX Group revealed plans to launch a European crypto trading platform aimed at institutional investors. The platform, which would offer both spot and derivatives trading, aligns with the growing demand from global banks and institutions interested in crypto assets. SIX Group already operates AsiaNext, a crypto derivatives platform in Singapore, in partnership with SBI Group. This expansion into Europe highlights Switzerland’s crypto-friendly regulatory environment, making it an attractive destination for institutional investors.

Commerzbank also entered the crypto market by offering its corporate clients access to Bitcoin and Ethereum. The German bank, in collaboration with Crypto Finance, provides secure crypto trading and custody services. After obtaining its crypto custody license in 2023, Commerzbank is now able to offer a regulated platform for institutional clients, meeting the growing demand for reliable digital asset solutions.

Lastly, Monerium launched its EURe stablecoin on the Noble blockchain, part of the Cosmos ecosystem. This marks the first euro-backed stablecoin on Cosmos, fully compliant with MiCA regulations. The EURe stablecoin enables instant euro transfers between blockchain wallets and traditional bank accounts via SEPA, ensuring seamless interaction between digital and traditional financial systems. Noble has become a key player within the Cosmos ecosystem, managing billions in Inter-Blockchain Communication (IBC) transfer volume, and offering a secure and cost-effective way to handle euro transactions across multiple blockchains.

These developments show Europe’s evolving approach to blockchain technology, combining financial innovation with regulatory measures to ensure the safe growth of the crypto market.