- The UK leads CNWE in cryptocurrency adoption, ranking 14th globally, with substantial transaction volume.
- FCA’s Financial Promotions Regime in 2024 raises anticipation among crypto firms for regulatory compliance.
- CNWE, second globally, contributed 17.6% of all crypto transactions, totaling $1 trillion in on-chain value.
According to research conducted by Chainalysis, a prominent American blockchain analysis company, the United Kingdom (UK) has positioned itself as the leading cryptocurrency economy in the Central, Northern, and Western Europe (CNWE) region. The UK achieved the 14th spot on Chainalysis’ Global Crypto Adoption Index for Grassroots Adoption. When it comes to the sheer volume of cryptocurrency transactions, the UK held the third position globally, with an estimated influx of $252.1 billion in the past year.
Jamie McNaught, the Founder and CEO of Solidi, a crypto exchange headquartered in the United Kingdom, provided insights into the factors contributing to these rankings.
“Customers in the UK typically seek alternatives to poor savings and investment returns — varying from propping up underperforming investment portfolios to customers going all in, looking for high returns on tokens or NFTs. While NFTs are no longer in favour, customers continue to look for overperforming, long-term returns in Bitcoin — particularly with the anticipated 2024 halving — and Ethereum, while also making sizable bets on XRP, Cardano, and Solana.”
Jamie McNaught, the Founder and CEO of Solidi
The impending Financial Promotions Regime by the Financial Conduct Authority (FCA), set to roll out in October 2024, is anxiously awaited by most crypto firms. Beginning October 8, 2024, all crypto asset transactions in the UK will fall under FCA regulation. Failure to meet FCA standards will render firms unable to legally promote crypto-related financial products.
Crypto exchange Luno and payment provider PayPal, among others, have announced plans to temporarily halt specific crypto purchases for UK customers. Their decision is driven by the need to ensure compliance with the FCA’s forthcoming regulations.
Apart from the United Kingdom, five economies within the Central, Northern, and Western Europe (CNWE) region found themselves among the ‘top 50 grassroots crypto adopters’ on a global scale. These economies include Spain, France, Germany, Italy, and the Netherlands.
In the crypto landscape this year, the CNWE region emerged as the second-largest economy, with North America taking the top spot. CNWE, on its own, contributed significantly to the global scene, representing 17.6% of all transactions worldwide between July 2022 and June 2023, accumulating an estimated $1 trillion in on-chain value.
While cryptocurrency adoption in the Central, Northern, and Western Europe (CNWE) region is still in its early stages, many industry leaders are eagerly anticipating what the future holds. Alessandro Perillo, the Chief Operating Officer of Italy-based Young Platform, emphasized the vast potential for innovation, particularly in the realms of smart contracts, NFTs, and DeFi. He commented, “It will be fascinating to observe how traditional financial institutions, tech startups, and regulators navigate the challenges and opportunities presented by the cryptocurrency space.”
