The UK has become the world’s leading cryptocurrency economy and the largest cryptocurrency country in Central, Northern and Western Europe (CNWE) by raw trading volume, according to a new study.
Blockchain analytics firm Chainaanalysis released two new chapters of its 2023 Cryptocurrency Geography Report on October 18, including its new CNWE study and the second edition on Eastern Europe.
According to the CNWE-focused report, the region has become the world’s second-largest crypto economy over the past year, behind North America. The region accounted for 17.6% of global transaction volume between July 2022 and June 2023, capturing an estimated $1 trillion in on-chain value during this period.
The UK tops the CNWE ranking of the largest cryptocurrency economies, ranking third globally in terms of trading volume, behind the United States and India. According to Chainaanalysis, the UK’s cryptocurrency trading volume last year was estimated at $252.1 billion.
Other large crypto economies in the CNWE include Germany and Spain, which received approximately $120 billion and $110 billion in crypto transactions respectively over the past year. Following these countries are major crypto economies such as France, Netherlands, Italy, Switzerland, Sweden and others.
Some cryptocurrency analysts have previously suggested that UK cryptocurrency adoption is growing. In February this year, cryptocurrency tax platform Recap reported that London beat out Dubai and New York to become the world’s most crypto-friendly city for business.
Cryptocurrency adoption has reached high levels as the UK adopts multiple cryptocurrency regulations. The UK government has been steadily advancing the passage of the Financial Services and Markets Bill, which adds the definition of crypto-assets to existing financial services legislation and provides a regulatory framework for stablecoins such as Tether (USDT).
related: Chainaanalysis laid off another 15% of its employees, citing difficult market conditions.
In October 2023, the UK Financial Conduct Authority implemented the Financial Promotions Regime, setting regulatory standards for cryptocurrency companies to promote their business without harming investors. Previously, the UK also passed the UK cryptocurrency “Travel Rules” in September 2023, requiring UK crypto asset companies to collect, verify and share certain information about the transfer of certain crypto assets.
In addition to the CNWE report, Chainaanalysis also released a detailed report on Eastern Europe, the fourth largest cryptocurrency market, according to the company. Between July 2022 and June 2023, the region received $445 billion in cryptocurrencies, accounting for 8.9% of global trading activity during the analysis period.
Chainaanalysis did not immediately respond to Cointelegraph’s request for information about its research methodology and what types of crypto transactions were included in the analysis. This article will be updated with new information.
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