Germany Surges Ahead of UK in Crypto Adoption
Crypto adoption is advancing in Germany, particularly among younger investors and wealth managers who are looking to invest inherited wealth in digital assets, according to CoinShares researcher Luke Nolan.
Nolan stated that German cryptocurrency adoption is showing 'very good progress' through family offices, wealth managers, individual advisors, and younger generations. In contrast, the UK is 'still very much behind,' said Nolan, attributing this to lagging regulations. The country's Financial Conduct Authority (FCA) only lifted its ban on crypto exchange-traded products less than a year ago.
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 EU's biggest economy was also the bloc's leader by MiCA authorization in June, with 57 authorized crypto companies.
The trend is not lost on the largest German banks. Deutsche Bank revealed that it is awaiting regulatory approval to launch crypto custody solutions for institutional clients in Europe, with a license expected in October. Landesbank Baden-Württemberg started offering crypto custody solutions after partnering with Austria-based Bitpanda for its institutional custody platform.
In the UK, the FCA has issued final guidance outlining when crypto activities may require authorization under the country's incoming regulatory regime. The regulator 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.