UK Tops Cryptocurrency Transactions in Europe, Trails Only US and India Globally
Summary:
The UK has become the leading country in cryptocurrency transactions in Central, Northern, and Western Europe (CNWE), according to a study by Chainalysis. The UK received an estimated $252.1 billion in cryptocurrency transactions within the past year, ranking third in the world in terms of transaction volumes. Additionally, the report highlights that London emerged as the world's most crypto-ready city in February 2023. The rise in crypto adoption in the UK coincides with the country's implementation of various cryptocurrency regulations, including the Financial Services and Markets Bill, Financial Promotions Regime, and the UK crypto "Travel Rule".
A recent study has positioned the United Kingdom as a significant global player in the field of cryptocurrency, holding the top spot for cryptocurrency transactions in Central, Northern, and Western Europe (CNWE). Blockchain research company Chainalysis shared the findings on October 18th as part of its 2023 'Geography of Cryptocurrency' analysis, which included a fresh report on the CNWE region and an updated overview of Eastern Europe.
The research uncovered that the CNWE territory was the second biggest player in the world's cryptocurrency arena over the past year, trailing only North America. The area accounted for a major 17.6% chunk of the worldwide transaction volume from July 2022 to June 2023, receiving a staggering estimated $1 trillion in on-chain value throughout that duration.
The UK led the pack in the CNWE's vast cryptocurrency economies, also coming third globally in transaction volumes, falling behind only the United States and India. The study estimates that Britain saw approximately $252.1 billion in cryptocurrency transactions in the last year.
Other notable CNWE economies included Spain and Germany, with around $110 and $120 billion in crypto during the last year, respectively. Other power players in this space included the likes of France, Netherlands, Italy, Switzerland, and Sweden.
There have been previous indications of growing cryptocurrency acceptance within the UK; a report released in February 2023 by Recap, the cryptocurrency tax platform, found that London was the top city globally for businesses' crypto-readiness, beating out Dubai and New York.
The UK's rise in crypto adoption has come amidst progressive cryptocurrency regulations. Efforts are being made towards adopting the Financial Services and Markets Bill that proposes to include a definition of crypto related assets in the existing financial services legislation. It will also offer a regulatory framework for stablecoins like Tether (USDT).
In October 2023, the U.K. Financial Conduct Authority established the Financial Promotions Regime to ensure that crypto firms promote their ventures responsibly and without undue harm to investors. Furthermore, in September the same year, the implementation of the UK crypto "Travel Rule' required businesses dealing in crypto assets to gather, confirm, and share specific data about certain crypto asset transfers.
Additionally, Chainalysis provided a comprehensive report about Eastern Europe, the fourth largest crypto market globally. The region accounted for $445 billion in cryptocurrency from July 2022 to June 2023, making up 8.9% of worldwide transactions during the period under review.
Details of the study's methodology or specifics regarding the genre of transactions included in the study weren't provided by Chainalysis when approached by Cointelegraph. This article will be updated when new information becomes available.
Published At
10/18/2023 1:00:00 PM
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