CoinShares crypto researcher notes Germany’s lead in adoption
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Written by
Simonas Brazionis - Updated 2026-09-17 19:33:53
Germany is showing significant progress in cryptocurrency adoption, especially among younger investors, while the United Kingdom lags due to regulatory delays, according to CoinShares crypto researcher Luke Nolan.
Nolan indicated that Germany's adoption is strong, driven by family offices, wealth managers, individual advisors, and younger generations investing inherited wealth in digital assets. In contrast, Nolan stated that the UK remains considerably behind, noting the Financial Conduct Authority (FCA) lifted its ban on crypto exchange-traded products for retail participants less than a year ago, making its digital asset market nascent.
Germany's Strong Crypto Market and Banking Integration
Germany currently has 89 licensed crypto-asset service providers, representing 25.5% of companies on the European Securities and Markets Authority’s (ESMA) Markets in Crypto Assets (MiCA) register as of Wednesday. In June, Germany led the EU in MiCA authorizations with 57 approved crypto companies.
Major German banks are also entering the crypto space. Deutsche Bank announced on Wednesday that it is awaiting regulatory approval to launch crypto custody solutions for institutional clients in Europe, anticipating a license in October. In April 2024, Landesbank Baden-Württemberg, Germany’s largest federal bank, began offering crypto custody solutions through a partnership with Austria-based Bitpanda.
UK's Emerging Regulatory Framework and Enforcement
Conversely, the UK’s FCA issued final guidance on Wednesday outlining when crypto activities would require authorization under the country’s new regulatory framework. The regulator will begin accepting licensing applications on September 30, with a deadline of February 28, 2027, for firms seeking transitional arrangements before the new regime takes effect on October 25, 2027.
On Thursday, the FCA issued cease-and-desist letters to three London locations suspected of facilitating illegal peer-to-peer crypto trading. The UK Parliament approved regulations bringing digital assets under the FCA’s regulatory purview in February and finalized a package of rules and guidance in June.
