Key Points:
- UK ranks as the biggest crypto country in Central, Northern and Western Europe (CNWE)
- Chainalysis study reveals UK received $252.1 billion in cryptocurrency transactions in the past year
- London named the world's most crypto-ready city for business
- UK government implements cryptocurrency regulations to promote adoption
The United Kingdom has solidified its position as a major player in the global cryptocurrency market, emerging as the biggest crypto country in Central, Northern and Western Europe (CNWE), according to a recent study conducted by blockchain analytics firm Chainalysis.
The study, part of Chainalysis' 2023 Geography of Cryptocurrency report, reveals that the CNWE region was the second-largest crypto economy in the world over the past year, accounting for 17.6% of global transaction volume. During the period between July 2022 and June 2023, the region received an estimated $1 trillion in on-chain value.
Within the CNWE region, the UK stood out as the top crypto economy, ranking third globally in terms of transaction volumes after the United States and India. The study estimates that the UK received a staggering $252.1 billion in cryptocurrency transactions in the past year.
This news comes as no surprise to crypto analysts, who have previously hinted at the growing adoption of cryptocurrencies in the United Kingdom. In fact, a report from February named London as the world's most crypto-ready city for business, surpassing Dubai and New York.
The UK's impressive level of crypto adoption is further supported by the country's proactive approach to implementing cryptocurrency regulations. The UK government has been making steady progress in 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 addition, the Financial Conduct Authority enforced the Financial Promotions Regime in October 2023, setting a regulated standard for crypto firms to promote their businesses without harming investors. Furthermore, the UK also introduced the U.K. crypto "Travel Rule" in September 2023, requiring crypto asset businesses to collect, verify, and share certain information about crypto asset transfers.
Chainalysis also released a separate report on Eastern Europe, which ranked as the fourth-largest crypto market globally. The region received $445 billion in crypto transactions between July 2022 and June 2023, representing 8.9% of global transaction activity during that period.
Please note that Chainalysis has yet to provide details about the methodology of its study and the types of crypto transactions included in the analysis.
