The latest study by blockchain analytics firm Chainalysis has highlighted the United Kingdom as a significant player in the global cryptocurrency economy. Specifically, the UK has emerged as the foremost crypto country in Central, Northern, and Western Europe (CNWE) in terms of raw transaction volume, confirming its growing prominence in this sector.
On October 18, Chainalysis released two new sections of its 2023 Geography of Cryptocurrency report. These sections include the brand-new CNWE study and the second edition focusing on Eastern Europe.
The CNWE-focused report unveiled that the region stood as the world’s second-largest crypto economy in the past year, trailing only North America. This area contributed to 17.6% of global transaction volume from July 2022 to June 2023, amassing an estimated $1 trillion in on-chain value during this period.
Within the CNWE, the UK topped the charts as the most substantial crypto economy and ranked third globally in terms of transaction volumes, trailing behind the United States and India. Chainalysis reported approximately $252.1 billion in cryptocurrency transactions in the UK over the past year.
Germany and Spain also emerged as notable crypto hubs within the CNWE, witnessing around $120 billion and $110 billion in crypto transactions, respectively. These figures position them as major crypto economies alongside countries like France, the Netherlands, Italy, Switzerland, and Sweden.
Previously, some crypto analysts had hinted at the burgeoning crypto adoption in the UK. In February, the crypto tax platform Recap highlighted London as the world’s most crypto-ready city for business, surpassing Dubai and New York.
The significant level of crypto adoption in the UK coincides with the country’s efforts to implement various cryptocurrency regulations. Progress has been made towards adopting the Financial Services and Markets Bill, aimed at defining crypto assets within existing financial services legislation and establishing a regulatory framework for stablecoins like Tether.
In October 2023, the UK’s Financial Conduct Authority enforced the Financial Promotions Regime, setting a regulated standard for crypto firms to promote their businesses without negatively impacting investors. Earlier, in September 2023, the UK also introduced the UK crypto “Travel Rule,” mandating crypto asset businesses to gather, verify, and share specific information regarding certain crypto asset transfers.
Aside from the CNWE report, Chainalysis also published a comprehensive report on Eastern Europe, marking it as the fourth-largest crypto market. The region recorded $445 billion in crypto transactions between July 2022 and June 2023, accounting for 8.9% of global transaction activity during the examined period.
