Germany Surpasses UK in Crypto Adoption Amid Regulatory Momentum

Crypto adoption is surging in Germany, outpacing the UK thanks to stronger institutional involvement and younger investors treating digital assets as an accessible place to deploy inherited wealth. According to CoinShares researcher Luke Nolan, German demand is driven by family offices, wealth managers, and individual advisors.

Nolan attributes the UK's slower pace to regulatory lag, as the Financial Conduct Authority (FCA) only recently resumed retail access to certain crypto exchange-traded products. The FCA has since issued final guidance on when crypto activities may require authorization under the UK's new regulatory regime.

Germany has a significant lead in MiCA licensing, with 89 licensed crypto-asset service providers accounting for 25.5% of firms listed on ESMA's register. Major German banks are moving toward crypto custody for institutions as regulatory approval milestones approach.