A blockchain analysis firm recently released a crypto report that attributed the UK to be a hotbed of crypto activity in Europe.
The United Kingdom is buzzing in crypto circles and for the best reasons. Chainalysis, a blockchain data platform, has released a crypto report that details the state of the industry in Europe. The report has held the UK in the top position for crypto activity in the region. The UK, emerging as a crypto hub, has the highest transaction volume for crypto. The volumes pertain to Central, Northern, and Western Europe (CNWE).
The crypto report stated the CNWE region was the biggest crypto economy after North America. Global transactions in the region saw a 17.6% share of the global pie in CNWE. The UK, in turn, holds the first spot in the CNWE region and the third spot globally. The first two are the US and India, respectively. Other European economies in terms of crypto volumes are Germany, France, Spain, and others.
“DeFi has played a key role in CNWE’s crypto adoption over the past few years, most notably with decentralized exchanges (DEXes). While much of this activity was driven by retail, institutions across the region are now opening doors to DeFi in light of regulatory frameworks that support diverse web3 initiatives,” said the report.
According to the report, the Markets in Crypto-Assets Act (MiCA) was also instrumental in promoting crypto adoption. It would lead to further stability for crypto in Europe, it said. Countries like France, Italy, and Germany have benefitted from the MiCA.
The United Kingdom’s growth in crypto adoption can also be attributed to several factors. The government, for instance, has taken a favorable stance on the industry. Crypto regulation in the country has also become a mainstream objective for the government. Regulators in the UK, like the Financial Conduct Authority, have also been a driving force for crypto.