Crypto adoption blooming in Germany, while UK is falling ‘behind,’ says CoinShares researcher

CoinShares researcher Luke Nolan highlighted a stark contrast between Germany and the United Kingdom in the pace of cryptocurrency adoption. Germany is seeing strong growth driven by institutional channels and younger investors, whereas the UK market remains in an early stage due to regulatory delays.

Germany’s institutional momentum

Nolan described German adoption as “very good progress” among family offices, wealth managers, individual advisors and younger generations looking to allocate inherited wealth to digital assets. Germany hosts 89 licensed crypto‑asset service providers, representing 25.5% of the European Securities and Markets Authority’s MiCA register, and led the EU in MiCA authorisations with 57 companies in June.

Banking sector involvement

• Deutsche Bank is awaiting regulatory approval to launch crypto custody services for institutional clients, with a licence expected in October.
• Landesbank Baden‑Württemberg began offering crypto custody solutions after partnering with Bitpanda.

UK’s nascent retail market

The UK is described as “still very much behind.” The Financial Conduct Authority (FCA) lifted its ban on crypto exchange‑traded products less than a year ago, after a 2021 prohibition on retail participants. The regulator issued final guidance on when crypto activities will require authorisation, opening licensing applications on 30 September with a transitional deadline of 28 February 2027. The FCA also sent cease‑and‑desist letters to three London locations suspected of illegal peer‑to‑peer trading.

Regulatory timeline

1. February 2024 – UK Parliament approved regulations bringing digital assets under FCA oversight.
2. June 2024 – FCA finalised rules and guidance.
3. 30 September 2024 – Licensing application window opens.
4. 25 October 2027 – New regulatory regime takes effect.