Germany Outpaces UK in Crypto Adoption as Wealth Management Drives Growth

Germany is rapidly expanding its crypto market integration into the regulated sector, driven by wealth management channels and banks. According to Luke Nolan, a crypto researcher at CoinShares, Germany's digital asset market is growing noticeably through younger investors and wealth management channels.

Nolan pointed out that family offices, wealth managers, and independent advisers are leading this trend in Germany, with a growing younger generation seeking to invest inherited assets in digital assets. This means demand in Germany is spreading beyond retail investors to the wider wealth management industry.

Germany has taken the lead in institutional foundations, with 89 authorized crypto-asset service providers listed on the European Securities and Markets Authority's (ESMA) Markets in Crypto-Assets (MiCA) register as of September 16. This accounts for 25.5% of the total number of registered providers.

Meanwhile, Britain is still considered to be in an early stage of building out its system. Nolan stated that 'Britain is still far behind' and noted that it has been less than a year since the Financial Conduct Authority (FCA) lifted its ban on crypto exchange-traded products.