Germany advances on crypto as UK falls behind, CoinShares researcher says
Germany is moving ahead on crypto while the UK lags, researcher says
CoinShares crypto researcher Luke Nolan said crypto adoption in Germany is showing "very good progress," while the United Kingdom is "still very much behind," mainly because of slower regulation. He made the comments on Cointelegraph's Chain Reaction show, in an article published on Sept. 17, 2026.
Nolan pointed to family offices, wealth managers and individual advisors, along with younger generations looking to put inherited wealth into digital assets, as the drivers of German adoption. A family office is a private firm that manages money for a wealthy family.
He described the UK's retail-facing crypto market as "nascent," meaning early and small. In his view, this is largely because the country's Financial Conduct Authority (FCA) only lifted its ban on crypto exchange-traded products less than a year ago. The regulator had banned these products for retail participants in January 2021. Exchange-traded products are listed investment products that track an asset's price.
Key numbers behind the two markets
- Germany has 89 licensed crypto-asset service providers, or 25.5% of the companies on the European Securities and Markets Authority's (ESMA) Markets in Crypto Assets (MiCA) register, updated on Wednesday.
- Germany was the European Union's leader by MiCA authorization in June, with 57 authorized crypto companies.
- Deutsche Bank, Germany's biggest bank, said on Wednesday it is waiting for regulatory approval to launch crypto custody for institutional clients in Europe, with a license expected in October.
- In April 2024, Germany's largest federal bank, Landesbank Baden-Württemberg, began offering crypto custody after partnering with Austria-based Bitpanda.
- The FCA will open crypto licensing applications on Sept. 30, with a Feb. 28, 2027 deadline for firms seeking transitional arrangements. The new regime takes effect on Oct. 25, 2027.
German banks are moving into crypto custody
The adoption trend is visible among Germany's largest banks, according to the report. Deutsche Bank said it is awaiting regulatory approval to offer crypto custody solutions for institutional clients in Europe, and it expects a license in October.
Landesbank Baden-Württemberg started offering crypto custody in April 2024 after partnering with Austria-based Bitpanda for its institutional custody platform. Crypto custody means safekeeping digital assets for clients.
What UK regulators have done
The FCA issued final guidance on Wednesday explaining when crypto activities may require authorization under the country's incoming regulatory regime. Licensing applications open on Sept. 30. Firms that want transitional arrangements must apply by Feb. 28, 2027, ahead of the new regime taking effect on Oct. 25, 2027.
On Thursday, the FCA said it sent a cease-and-desist letter to three London locations suspected of facilitating illegal peer-to-peer crypto trading. Peer-to-peer trading is when people trade crypto directly with each other rather than through an exchange.
The UK Parliament approved regulations bringing digital assets within the FCA's regulatory remit in February and finalized a package of rules and guidance in June.
What is confirmed
Confirmed facts in the report include Germany's 89 licensed crypto-asset service providers and its 25.5% share of the ESMA MiCA register as of the Wednesday update, and Germany's position as the EU leader by MiCA authorization in June with 57 authorized companies.
Also confirmed are the UK's regulatory timeline, as set out by the FCA, and the FCA's announcement that it sent a cease-and-desist letter to three London locations. Deutsche Bank's stated plan to seek approval for institutional crypto custody and its expectation of an October license come from the bank.
What is still unclear
Nolan's comparison of Germany and the UK reflects his assessment as a CoinShares researcher, not a measured ranking of adoption levels. The report does not include figures on how much crypto retail investors in either country hold, or any direct comparison of investment volumes between the two markets.
The Deutsche Bank license is described as expected in October, not granted. The report also does not say which German or UK firms will apply for licenses once the FCA window opens on Sept. 30.
Why this matters
The two markets are at different stages. Germany accounts for roughly a quarter of the companies on the EU's MiCA register, and its largest banks are preparing or already offering crypto custody. In the UK, the licensing system is still being built, with applications not opening until Sept. 30 and the full regime not taking effect until Oct. 25, 2027.
