Germany Surges Ahead in Crypto Adoption, Leaving the UK Behind
Crypto adoption in Germany is rapidly advancing, particularly among younger investors, while the UK lags behind due to regulatory challenges, according to CoinShares researcher Luke Nolan.
Germany has made significant progress in crypto adoption through family offices, wealth managers, individual advisors, and younger generations looking to invest inherited wealth in digital assets. The country's largest banks are also venturing into crypto, with Deutsche Bank awaiting regulatory approval to launch crypto custody solutions for institutional clients in Europe.
The UK, on the other hand, is 'still very much behind', Nolan said, citing the country's Financial Conduct Authority's (FCA) slow pace in lifting its ban on crypto exchange-traded products. The FCA only lifted the ban less than a year ago, making the digital asset market 'nascent'. In contrast, Germany has 89 licensed crypto-asset service providers, accounting for 25.5% of companies in the European Securities and Markets Authority's (ESMA) Markets in Crypto Assets (MiCA) register.
The FCA will open licensing applications on September 30, with a February 28, 2027 deadline for firms seeking transitional arrangements ahead of the new regime taking effect on October 25, 2027. The regulator also issued final guidance outlining when crypto activities may require authorization under the country's incoming regulatory regime.