ChainCatcher report, according to Cointelegraph, Luke Nolan, a crypto researcher at CoinShares, stated on the Chain Reaction program that crypto adoption in Germany is making “very good progress” through family offices, wealth management firms, and younger investors, while the UK remains “significantly behind,” primarily due to regulatory delays. Nolan noted that the UK’s Financial Conduct Authority (FCA) only lifted its ban on crypto exchange-traded products less than a year ago, and its digital assets market is still in its “infancy.” In related data, Germany currently has 89 licensed crypto asset service providers, accounting for 25.5% of all MiCA-registered firms under the European Securities and Markets Authority (ESMA); in June this year, Germany also led the EU with 57 authorized crypto firms. Meanwhile, Deutsche Bank announced on Wednesday that it is awaiting regulatory approval to launch crypto custody services for institutional clients in Europe, with a license expected by October; Landesbank Baden-Württemberg also began offering crypto custody services in April 2024 through a partnership with Bitpanda. In contrast, the FCA released final guidance on Wednesday clarifying when crypto activities require authorization and plans to open license applications on September 30; the new regime will take effect on October 25, 2027. Additionally, on Thursday, the FCA issued cease-and-desist letters to three London locations suspected of facilitating illegal peer-to-peer crypto transactions; the UK Parliament approved legislation in February to bring digital assets under FCA oversight and finalized a comprehensive set of rules in June.
Germany Leads in Crypto Adoption, UK Lags Behind Due to Regulatory Delays
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Summary
Germany leads crypto adoption in the EU under MiCA (EU Markets in Crypto-Assets Regulation), with 89 licensed providers—25.5% of ESMA’s MiCA-registered firms—and 57 authorized companies as of June. According to Luke Nolan of CoinShares, growth is driven by family offices, wealth managers, and young investors. The UK lags behind, with FCA licensing set for September 30 and a new regulatory regime beginning on October 25, 2027. Liquidity and crypto markets continue to be impacted by regulatory delays.
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