Amidst a surge in crypto adoption, the UK has been amplifying its embrace of regulations targeting both crypto and stablecoins, as per the findings of a recent study.
The United Kingdom has asserted its dominance as a pivotal player in the global cryptocurrency landscape, emerging as the foremost crypto powerhouse in Central, Northern, and Western Europe (CNWE). This revelation stems from the latest insights unveiled by blockchain analytics firm Chainalysis in its 2023 Geography of Cryptocurrency report, encompassing a fresh CNWE study and the second edition dedicated to Eastern Europe.
The report spotlighting CNWE underscores the region’s status as the world’s second-largest crypto economy in the preceding year, trailing only behind North America. Accounting for a substantial 17.6% of the global transaction volume from July 2022 to June 2023, CNWE garnered an estimated $1 trillion in on-chain value during this period.
The U.K., claiming the top spot in CNWE’s roster of prominent crypto economies, secured the third position globally in terms of transaction volumes, outshining nations like Germany, Spain, France, Netherlands, Italy, Switzerland, Sweden, and others. Chainalysis reports an impressive $252.1 billion in cryptocurrency transactions within the U.K. in the past year.
Noteworthy crypto economies in CNWE, such as Germany and Spain, clocked in around $120 billion and $110 billion in crypto transactions, respectively. Following closely are major crypto players like France, Netherlands, Italy, Switzerland, Sweden, and others, contributing to the region’s crypto vibrancy.
Crypto analysts had earlier hinted at the burgeoning crypto scene in the United Kingdom, with London, in February, being hailed as the world’s most crypto-ready city for business, surpassing cities like Dubai and New York, according to the crypto tax platform Recap.
This substantial crypto adoption in the U.K. aligns with the country’s proactive approach to cryptocurrency regulations. The U.K. government’s strides toward adopting the Financial Services and Markets Bill involve defining crypto assets within existing financial services legislation and establishing a regulatory framework for stablecoins, such as Tether.
In October 2023, the U.K. Financial Conduct Authority implemented the Financial Promotions Regime, setting a regulated standard for crypto firms to promote their businesses without jeopardizing investor interests. Preceding this, the U.K. had also embraced the U.K. crypto “Travel Rule” in September 2023, mandating crypto asset businesses to collect, verify, and share specific information regarding crypto asset transfers.
In addition to the comprehensive CNWE report, Chainalysis delves into Eastern Europe, labeling it as the fourth-largest crypto market. The region witnessed a substantial $445 billion in crypto transactions from July 2022 to June 2023, contributing 8.9% to global transaction activity during this analyzed period.
While details on the study’s methodology and the types of crypto transactions included remain undisclosed by Chainalysis at present, this article will be updated promptly upon receiving new information.
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