The United Kingdom has emerged as a major player in the global cryptocurrency economy, becoming the largest crypto country in Central, Northern and Western Europe (CNWE) in terms of raw transaction volume. This revelation comes from a new study released by blockchain analytics firm Chainalysis.
Chainalysis recently published two new chapters of its 2023 Geography of Cryptocurrency report, which includes a brand new study on CNWE and a second edition focusing on Eastern Europe. According to the CNWE-focused report, the region ranked as the second-largest crypto economy in the world over the past year, only behind North America. Between July 2022 and June 2023, CNWE accounted for 17.6% of the global transaction volume, with an estimated $1 trillion in on-chain value.
Of all the countries within the CNWE, the United Kingdom topped the list as the biggest crypto economy. It ranked third globally in terms of transaction volumes, trailing only the United States and India. Chainalysis reported that the UK received approximately $252.1 billion in cryptocurrency transactions in the past year.
Germany and Spain also made significant contributions to the CNWE’s crypto economy. Germany received around $120 billion in crypto transactions, while Spain received $110 billion during the same period. Following behind were other major crypto economies like France, Netherlands, Italy, Switzerland, and Sweden, among others.
The growing adoption of cryptocurrencies in the United Kingdom has been hinted at by crypto analysts in the past. In February, the crypto tax platform Recap released a report declaring London as the world’s most crypto-ready city for business, surpassing Dubai and New York.
The substantial level of crypto adoption in the UK coincides with the country’s implementation of several cryptocurrency regulations. The UK government has been making progress towards adopting the Financial Services and Markets Bill, which includes a definition of crypto assets and establishes a regulatory framework for stablecoins like Tether (USDT).
In October 2023, the UK Financial Conduct Authority enforced the Financial Promotions Regime, setting a regulated standard for crypto firms to promote their business without negatively impacting investors. The UK also recently adopted the crypto “Travel Rule,” which requires crypto asset businesses to collect, verify, and share specific information about certain crypto asset transfers.
In addition to the CNWE study, Chainalysis also released a detailed report on Eastern Europe, which is ranked as the fourth-largest crypto market. The region received $445 billion in crypto transactions between July 2022 and June 2023, representing 8.9% of global transaction activity during that period.
While Chainalysis did not immediately respond to requests for details about the methodology and specific types of crypto transactions analyzed in the study, this article will be updated once further information becomes available.
Overall, the United Kingdom’s prominent position in the global cryptocurrency economy highlights its growing adoption and regulatory efforts in the crypto space. As the largest crypto country in CNWE and with significant transaction volumes, the UK is poised to continue its dominance in the crypto market.