Germany Surges Ahead in Crypto Adoption While UK Lags Behind
CoinShares researcher Luke Nolan notes that Germany's crypto adoption is progressing faster than in the UK. According to Nolan, institutional involvement and younger investors treating digital assets as a more accessible place to deploy inherited wealth are driving German demand. In contrast, the UK remains constrained by regulatory lag.
The difference between the two countries' regulatory momentum can be attributed to the fact that Germany is part of the European Union's Markets in Crypto-Assets (MiCA) licensing process. As a result, 89 licensed crypto-asset service providers are based in Germany, representing 25.5% of firms listed on ESMA's MiCA register.
Major German banks are also moving towards crypto custody for institutions as regulatory approval milestones approach. Deutsche Bank expects to receive its license in October and is preparing to launch crypto custody solutions for institutional clients in Europe. Landesbank Baden-Württemberg, Germany's largest federal bank, has already begun offering crypto custody solutions through a partnership with Bitpanda.
The UK FCA is working on its own framework for regulating crypto activities, but the process is slower. The regulator has issued final guidance describing when crypto activities may require authorization under the UK's incoming regulatory regime. However, licensing applications will only open on September 30, and firms seeking transitional arrangements have until February 28, 2027 to apply.