The United Kingdom has emerged as a major cryptocurrency economy worldwide and the biggest crypto country in terms of raw transaction volume in Central, Northern and Western Europe (CNWE), according to a new study.
The blockchain analytics firm Chainalysis on Oct. 18 released two new chapters of its 2023 Geography of Cryptocurrency report, including its brand new CNWE study and the second edition on Eastern Europe.
According to the CNWE-focused report, the CNWE region was the second-largest crypto economy in the world over the past year, behind only North America. The region accounted for 17.6% of global transaction volume between July 2022 and June 2023, receiving an estimated $1 trillion in on-chain value during the time period.
The U.K. has topped CNWE’s biggest crypto economies list and also ranked third in the world in terms of transaction volumes after the United States and India. According to Chainalysis, the U.K. received an estimated $252.1 billion in cryptocurrency transactions in the past year.
Other big crypto economies in the CNWE included Germany and Spain, which received around $120 billion and $110 billion in crypto over the past year, respectively. These countries are followed by major crypto economies like France, Netherlands, Italy, Switzerland, Sweden and others.
Some crypto analysts have previously hinted at growing crypto adoption in the U.K. before. In February, the crypto tax platform Recap reported that London was the world’s most crypto-ready city for business, beating Dubai and New York.
The significant level of crypto adoption in the U.K. comes amid the country adopting a number of cryptocurrency regulations. The U.K. government has been steadily progressing towards the adoption of the Financial Services and Markets Bill, which adds a definition of crypto assets to the existing financial services legislation while also providing a regulatory framework for stablecoins like Tether (USDT).
In October 2023, the U.K. Financial Conduct Authority enforced the Financial Promotions Regime, establishing a regulated standard for crypto firms to promote their business without hurting investors. Previously, the U.K. also adopted the U.K. crypto “Travel Rule” in September 2023, requiring crypto asset businesses in the U.K. to collect, verify and share certain information about certain crypto asset transfers.
In addition to the CNWE report, Chainalysis also released a detailed report on Eastern Europe, which is the fourth-largest crypto market, according to the firm. The region received $445 billion in crypto between July 2022 and June 2023, which represents 8.9% of global transaction activity during the analyzed period.
Chainalysis did not immediately respond to Cointelegraph’s request to tell more about the methodology of its study and what types of crypto transactions were included in the analysis. This article will be updated pending new information.