- European markets are leading the race for crypto adoption.
- A new Chainalysis report reveals it all.
- Both institutions and everyday users are embracing crypto.
Blockchain data platform Chainalysis has published two excerpts of its upcoming 2023 Geography of Cryptocurrency Report, suggesting that European countries are leading the race of crypto adoption at user and institutional levels.
In the report, Chainalysis classified Central, Northern, and Western Europe (CNWE) as the second-largest global cryptocurrency economy this year. Eastern Europe trailed as the fourth-largest crypto market, with $445 billion in value received on-chain between July 2022 and June 2023.
Grassroots Crypto Adoption in Eastern Europe
In the first excerpt, Chainalysis noted that grassroots crypto adoption is advancing in Eastern Europe despite the ongoing Russia-Ukraine conflict.
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Notably, Ukraine and Russia are still the regional leaders for crypto usage, both in grassroots adoption and raw transaction volume.
According to the report, the Chief Legal Counsel of Kuna Exchange, Anna Voievodina, noted that Ukrainians are becoming more interested in crypto and learning about its opportunities to survive domestic challenges in the country.
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“Since the Ukrainian economy is going down and towns are being destroyed, people are leaving. Now, those Ukrainians living under European legal order are using financial instruments they weren’t using before. People are looking for new options and aren’t afraid of KYC as they used to be,” Voievodina said.
Per Voievodina, Ukrainians are embracing crypto for everyday uses, such as sending remittances, making donations, and contributing to savings.
In contrast, institutions are broadening their horizons with decentralized finance (DeFi) and Web3 experimentations in Central, Northern, and Western Europe (CNWE).
DeFi Supercharges Crypto Adoption in CNWE
In the other excerpt, Chainalysis noted that DeFi is a popular service category in CNWE, accounting for 54.8% of cryptocurrency value received across the entire region between July 2022 and June 2023.
While retail consumers have a significant contribution to this activity, the report lauds the move by institutions across the region to open doors to DeFi in light of complementary regulatory frameworks that support a range of Web3 initiatives.
Stay updated on the new crypto tax reporting rule in the EU:
EU Council Adopts New Crypto Tax Reporting Rule
Read how the FCA resisted political push to vouch for crypto in the UK:
FCA Resisted Political Push to Open UK Crypto Market Access
