A recent study by blockchain analytics firm Chainalysis highlights the United Kingdom’s rise as a prominent cryptocurrency hub. The report positions the UK as the primary crypto powerhouse in Central, Northern, and Western Europe (CNWE) by raw transaction volume.
The CNWE-focused report unveils that, over the past year, CNWE was the world’s second-largest cryptocurrency economy, second only to North America. This region accounted for 17.6% of the global transaction volume, translating to an estimated $1 trillion in on-chain value between July 2022 and June 2023.
UK Leads the Charge
Within CNWE, the United Kingdom clinched the top spot as the most significant crypto economy and globally ranked third in transaction volumes, trailing only the United States and India. Chainalysis reports an estimated $252.1 billion in cryptocurrency transactions in the UK over the past year.
Top countries by cryptocurrency value received between July 2022 and June 2023. Source: Chainalysis
Germany and Spain also emerged as substantial crypto economies in CNWE, securing approximately $120 billion and $110 billion in crypto transactions, respectively. These frontrunners are followed by other major crypto economies like France, the Netherlands, Italy, Switzerland, and Sweden.
UK’s Regulatory Advancements
The UK’s crypto dominance is accompanied by a series of regulatory advancements. The government has been progressing towards implementing the Financial Services and Markets Bill, which provides a regulatory framework for crypto assets and stablecoins. In October 2023, the UK Financial Conduct Authority introduced the Financial Promotions Regime, establishing regulated standards for crypto firms. Moreover, the UK adopted the “Travel Rule” in September 2023, mandating crypto asset businesses to collect, verify, and share specific information related to crypto asset transfers.
Eastern Europe’s Crypto Market
In addition to the CNWE report, Chainalysis also released a comprehensive analysis of Eastern Europe, positioning it as the fourth-largest crypto market. The region witnessed $445 billion in crypto transactions between July 2022 and June 2023, constituting 8.9% of global transaction activity.
Chainalysis has yet to provide details about the methodology of the study and the types of crypto transactions included in the analysis, pending further updates.