The UK has become the world's largest cryptocurrency economy and the largest cryptocurrency country in Central, Northern and Western Europe (CNWE) by gross trading volume, according to a new study .
Blockchain analysis company Chainalysis published two new chapters of its Geography of Cryptocurrency 2023 report on October 18, a new CNWE study and a second edition in Eastern Europe.
According to a CNWE-centric report, the region was the second-largest crypto economy in the world last year after North America. Between July 2022 and June 2023, the region accounted for 17.6% of global trade, generating $1 trillion in value chain over this period.
The UK is on CNWE's list of largest crypto-economies and ranks third in the world in terms of trading volume, after the US and India. According to Chainalysis, the UK received approximately $252.1 million in cryptocurrency transactions last year.
Other major crypto economies in the CNWE include Germany and Spain, which received around $120 billion and $110 billion, respectively, last year. These countries are followed by countries with large crypto economies, such as France, Netherlands, Italy, Switzerland, Sweden, etc.
A number of crypto analysts have already hinted at an increase in crypto adoption in the UK. In February, crypto-tax forum Recap reported that London was the city most willing to accept cryptocurrencies for businesses, ahead of Dubai and New York.
A significant level of cryptocurrency adoption in the UK occurs when the country adopts certain cryptocurrency regulations. The UK government continues to make progress with the Financial Services and Markets Act, which adds a definition of cryptoassets to the existing Financial Services Act and provides a regulatory framework for stablecoins such as Tether (USDT).
Related: Chainalysis lays off another 15%, citing tough market conditions
In October 2023, the UK's Financial Conduct Authority introduced the Financial Promotion Regime, setting regulatory requirements for crypto companies to promote their businesses without harming investors. Earlier in September 2023, the UK also passed the crypto-asset “travel laws”, which require UK-based crypto-asset companies to collect, verify and share certain transfer information. of certain crypto-assets.
In addition to CNWE's report, Chinaalysis also published a detailed report on Eastern Europe's fourth-largest crypto market, according to the company. Between July 2022 and June 2023, the region received $445 billion in crypto, representing 8.9% of global transaction activity during the analyzed period.
Cointelegraph's Chainalysis did not immediately respond to requests for information about its research methodology and the crypto transactions included in the analysis. This article will be updated pending further information.
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