A recent study reveals that Russia and the UK are leading in crypto adoption compared to the rest of Europe. Although these countries are adopting contrasting strategies, the underlying data offers significant insights.
In fact, the UK is lagging behind, having been overtaken by Russia, while EU countries are not far behind. It’s hoped that overall adoption will continue to expand across the sector.
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Crypto Adoption in Europe
The EU’s comprehensive MiCA regulations have unsettled local crypto markets; several key firms have exited the region, raising concerns about its competitiveness.
A new report corroborates these fears, indicating that the two countries in Europe with the highest levels of crypto adoption are actually outside the EU.
Conversely, Russia and Great Britain are currently at the forefront of crypto adoption in Europe, each taking a different approach to the issue.
Recently, the UK has lost its leading position to Russia, with the gap between it and major EU players such as France and Germany closing.
Harsh new taxes are pushing many businesses out of this market, but the political landscape is attempting to change course. Voices from the institutional sphere and far-right thinkers are advocating for more favorable Web3 reforms, and some progress is being made.
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Nonetheless, the UK’s crypto adoption relative to the rest of Europe appears more like an anomaly.
Russian Sanctions Evasion
In contrast, Russia is addressing the Web3 sector with enthusiasm. Chainalysis reports that large institutional investors in Russia are more invested in crypto than any other class in Europe, and DeFi is being utilized for sanctions evasion, presenting a clear application.
Moreover, the government is heavily involved in this industry, with funding appearing in various forms including ruble-backed stablecoins and allegedly secret operations, which provides the sector with a strong ally.
While this approach differs from a naturally developing DeFi market, it is still promoting grassroots adoption.
It’s anticipated that the rest of Europe will continue to catch up to the UK, with real adoption and innovation in Web3 on the rise. The EU is easing some of its most burdensome regulations, and traditional finance’s investment in crypto is increasing.
This could help restore competitiveness on the global stage.
Yet, a crucial lesson emerges here: Even if Russia’s government-sanctioned use of crypto for sanctions evasion appears controversial, it is yielding tangible benefits. The EU needs to offer a competing framework if it hopes to reclaim its position in grassroots crypto adoption.
