Germany is seeing significant growth in cryptocurrency adoption, driven by family offices, wealth managers, and younger investors. According to CoinShares researcher Luke Nolan, the country currently hosts 89 licensed crypto-asset service providers, which represents 25.5% of all companies listed in the European Securities and Markets Authority MiCA register.
Major German financial institutions are expanding their digital asset services. Deutsche Bank is awaiting regulatory approval for institutional crypto custody solutions, with a license anticipated in October. Additionally, Landesbank Baden-Wurttemberg began offering crypto custody in April 2024 through a partnership with the Austrian firm Bitpanda.
In contrast, the UK market remains in a nascent stage. The Financial Conduct Authority only recently permitted crypto exchange-traded products for retail investors after a ban that began in January 2021. The regulator is now preparing for a new framework, with licensing applications opening on September 30 and a deadline for transitional arrangements set for February 28, 2027.
The UK regulatory landscape is shifting as the government works to bring digital assets under the FCA's remit. Following the approval of regulations in February and finalized rules in June, the FCA has begun enforcement actions, including issuing cease-and-desist letters to locations suspected of facilitating illegal peer-to-peer crypto trading.
