Today, there is no doubt that Europe is a key contributor to shaping the cryptocurrency space. Switzerland has become a hub for multiple blockchain ecosystems, with the region of Zug now known as ‘Crypto Valley’. Then there’s Germany, where a pioneering IoT-focused ledger ecosystem is making waves within the crypto industry. Plus, a joint effort between the UK and Finland has given thousands of users access to a successful DeFi lending project. On top of all this, Europe is also well known for its regulatory clarity set out by the government.
If you are looking to see which major cryptocurrencies have genuine European roots, what that means in practice, and why it matters under Europe’s evolving regulatory environment, we cover some of the most successful projects in the region to date.
Why Europe Matters in Crypto
Firstly, the EU has brought Europe into the blockchain and cryptocurrency conversation. Importantly, the EU has seen the benefits of blockchain tech and created a cryptocurrency framework that outlines clear regulations under a single set of rules. The idea was to make life easier for crypto companies to operate within the boundaries of the law and to create a safer, more trustworthy environment for investors.
Rules covered by the EU’s MiCA include:
- Transparency
- Authorisation
- Market conduct
- Consumer Protection
Of course, non-EU countries do not follow MiCA rules; however, countries like Switzerland remain hotspots for blockchain and crypto growth. Switzerland’s Zug is well-known for its favourable legal framework and crypto-friendly banking infrastructure.
Major Cryptocurrencies with European Roots
Several major cryptocurrencies were born and now operate in European countries. Those that have been successful include Ethereum, which has long been the second-largest cryptocurrency by market cap. Pokadot, Tezos, IOTA, Lisk, MultiversX, and Aave are also on the list, simply because these cryptos have seen major success.
Ethereum (Switzerland)
Ethereum is arguably the second most well-known crypto after Bitcoin. When people mention cryptocurrency or blockchain tech, Ethereum is usually in the conversation. It’s part of the Ethereum Foundation (Stiftung Ethereum) and operates under Swiss non-profit rules within the Zug region. It is essentially an ecosystem that uses smart contracts to settle transactions, an idea proposed in 2013 by Russian-born citizen Vitalik Buterin.
Switzerland became the base for the Ethereum Foundation thanks to its legal framework surrounding token sales and nonprofit operations. This was at a time when no other country offered legal clarity. Once the foundation chose its base, it raised $18 million in 2014 through a public crowd sale. In 2015, the Ethereum ecosystem launched, fueled by its Ether cryptocurrency.
Polkadot (Switzerland)
Another successful European cryptocurrency also coming out of Zug, Switzerland, is Poladot. Like Ethereum, it is also a legally registered Swiss entity and a foundation. It was launched by Dr. Gavin Wood, and we can see why Pokadot’s roots are in Zug because he was formerly a CTO for Ethereum. As for the mainnet itself, it entered the crypto arena back in May 2020 after raising roughly $145 million a few years earlier in October 2017.
What’s so special about this Web3 ecosystem is that it began a new era of blockchain tech by creating a system that uses what is called a central relay chain, which gives other independent blockchains the ability to communicate and share security via a central relay chain.
Tezos (Switzerland)
The third European cryptocurrency on our list is Tezos. The nonprofit behind the crypto is the Tezos Foundation. The idea was to bring to the table a blockchain protocol that allows token holders to vote on protocol upgrades and avoid hard forks. Like the Polkadot and Ethereum foundations, the Tezos Foundation is based in Switzerland’s Zug and supervised by the Swiss Federal Foundation Supervisory Authority. As you’ve probably guessed, it’s no coincidence that Zug is called Crypto Valley.
The Tezos Foundation adopted the Swiss legal framework in 2017, allowing Arthur and Kathleen Breitman’s original 2014 proposal to be finally realized, officially launching its mainnet in 2018. Today, Tezos is a well-known European-based crypto operating under the nonprofit foundation laws of Switzerland.
IOTA (Germany)
The IOTA Foundation (IOTA Stiftung) was officially incorporated in Berlin on 3 November 2017, making it the first fully regulated nonprofit foundation in Germany to be capitalised with a cryptocurrency. The IOTA protocol uses a directed acyclic graph (DAG) architecture called the Tangle, rather than a traditional blockchain, and was designed primarily for the Internet of Things.
The founders deliberately chose Germany as the jurisdiction for the foundation. The rationale was that subjecting the project to oversight from one of Europe’s most rigorous regulatory environments would give IOTA greater legitimacy for working with enterprises, governments, and research institutions. IOTA is one of the clearest Germany-linked projects in crypto and shows that Europe’s contribution was not limited to DeFi and smart-contract platforms.
Lisk (Germany)
Lisk has UK, Swiss and German influence. It leans more towards Germany as the crypto’s main development studio, Lightcurve, is in Berlin. However, the foundation is yet another entity registered in Zug, Switzerland, making it number four on our list of cryptocurrencies founded in Europe that use a Swiss nonprofit setup. As for German/British roots, this comes via its founders, who are Max Kordek from Germany and Oliver Beddows from the UK.
The idea behind Lisk is to unravel the complex art of cryptography by opening blockchain tech to JavaScript developers. In other words, the developers behind the crypto are trying to make building blockchain apps feel more like building traditional web apps. Recently, Lisk has been focusing on Layer 2 solutions and emerging-market adoption.
MultiversX / Elrond (Romania)
When MultiversX first launched, it was known as Elrond and was co-founded by three Romanian entrepreneurs. Beniamin Mincu, Lucian Mincu and Lucian Todea took the Elrond mainnet online in 2020 and later in 2022 rebranded the project to MultiversX. The functionality of its blockchain ecosystem better suits its new name, as the protocol speeds up network throughput by splitting the network into smaller parts to process transactions in parallel. Hence, Multi + Verse.
It does this by using adaptive state sharding via a secure proof-of-stake consensus mechanism. Think of it like adding more lanes to a motorway to speed up the flow of traffic, which, of course, reduces congestion. As a result, throughput speeds from A to B are faster.
Aave (Finland / UK)
Aave crypto was created in Finland by Stani Kulechov, who originally founded ETHLend in 2017 before switching to Aave in 2020. Today, Aave Companies operates in Europe, including the UK’s financial capital, London, and boasts one of the largest decentralised lending protocols in the crypto space.
It is a DeFi lending protocol that allows you to borrow and lend crypto using Ethereum’s Layer 1 smart contract-based ecosystem. Its success as a European crypto can be judged by its TVL (Total Value Locked), which is in the billions, representing deposits held by users for decentralized financial lending and borrowing.
How MiCA Changes the Conversation Around European Crypto
The Markets in Crypto-Assets Regulation (MiCA) entered into force in June 2023. By the end of 2024, the MiCA framework was fully applied, establishing what is now the region’s official set of uniform EU-wide rules for crypto-asset issuance, transparency, authorisation, and market conduct. The reason this matters in our European crypto conversation is that the EU has now firmly positioned itself as a destination for blockchain entities seeking to operate under a clear set of rules.
Entities operating under Europe’s regulatory framework for digital assets are now subject to clearer and harmonised regulation. The goal of offering investors a more transparent system is to ensure that existing crypto firms and startups in the EU follow a unified set of rules. How successful the new rules will be, we will discover in due course.
The European Crypto Hub at a Glance
Europe has always been a likely contender to become a hub for cryptocurrency, as has the USA, the Middle East, Asia and South America. However, what makes the European story so special is that many, but not all, crypto entities operating on the continent operate under clear legal frameworks.
Switzerland has long offered a home for crypto startups, thanks to its willingness to allow tech firms to register as non-profit foundations for blockchain development. Early adopters of this system include Ethereum, Tezos and Polkadot.
In the EU, MiCA applies to crypto-asset service providers and issuers operating within the region, rather than to specific projects such as MultiversX, Lisk, Aave and IOTA, which fall under the framework in which relevant entities operate in the EU. This framework will hopefully boost investor confidence. That leaves the UK as the odd one out, which is not part of the EU but is in the process of creating its own separate systems.
Frequently Asked Questions
What cryptocurrencies were founded in Europe?
Some of the major crypto projects founded in Europe are Swiss-based, including well-known names such as Ethereum, Polkadot, and Tezos. There’s also IOTA and Lisk coming out of Germany, MultiversX from Romania and Aave, which is Finland/UK-based.
Is Ethereum a European cryptocurrency?
No. Ethereum is a company based in Europe, known as the Ethereum Foundation. Its cryptocurrency is known as Ether (ETH), which, although it was founded in Europe, is not a European currency; rather, it is a decentralized cryptocurrency.
Where is Polkadot based?
Polkadot is based in Zug, Switzerland, and is legally registered as the Web3 Foundation, which operates a Web3 blockchain ecosystem featuring parachains and the cryptocurrency DOT.
Was Tezos founded in Europe?
Yes. The Tezos Foundation was founded in 2017, while its mainnet launched in 2018. The foundation launched in Zug, Switzerland, as a nonprofit and is regulated by the Swiss Federal Foundation Supervisory Authority.
Which German crypto projects are the best known?
IOTA and Lisk are both German crypto projects based in Berlin.
Was Elrond founded in Romania?
Yes. MultiversX was formerly known as Elrond, co-founded in 2018 by Romanian founders Beniamin Mincu, Lucian Mincu and Lucian Todea. Today, the company is based in Romania, while the project operates globally.
Is Aave a European crypto project?
Yes. Aave began as ETHLend in 2017 and was launched by Stani Kulechov in Finland. The company’s operations later expanded into the UK capital, London.
Why is Switzerland a central hub for cryptocurrency?
Prior to the USA, Europe and other countries across the globe introducing clear legal frameworks for crypto startups to operate legally, Switzerland already has a system in place. Early projects like Ethereum, Polkadot, and Tezos were able to take advantage of Switzerland’s clear legal guidance through regulators like FINMA.
How does MiCA affect crypto in Europe?
Europe’s MiCA was long overdue, considering the rise of cryptocurrency, but when it did come into fruition in 2023, and key stages were added and finalized by the end of 2024, it provided crypto startups and existing entities with clear, uniform rules to follow. It means that these startups have a legal framework to operate, making Europe a more attractive destination for crypto and blockchain tech-minded organizations to operate
