How the UK became the most powerful cryptocurrency country in Europe | By SimpleSwap.io | Coins | December 2023

According to a report by New York-based analytics firm Chainalytic, the UK is the first European country to join the world’s top three cryptocurrency economies.

As of 2023, the total value of cryptocurrency transactions in the UK reached $252.1 billion. According to experts, this is the highest figure among European countries. Globally, only the United States and India had higher volumes in the analysis.

Why are cryptocurrencies so popular in the UK, and what can Europe expect from the biggest cryptocurrency powerhouse in the near future?

Before looking at the crypto aspect of UK policy, let’s understand the Chainalytic platform itself.

Chainalytic is a New York-based company founded in 2014 as a tool to monitor cryptocurrencies and track suspicious transactions globally. Chainalysis is known for uncovering high-profile cases, including the discovery of 650,000 BTC missing after the collapse of the Mt.Gox exchange.

Software provided by Chainalytic is now used to prevent hacks and cyberattacks on cryptocurrency exchanges or address the consequences of such incidents.

The reason why the UK ranked first in terms of trading volume is because of the local citizens’ attitude towards cryptocurrency. Statistics show that more than 90% of the UK population is aware of Bitcoin and cryptocurrencies. The majority of citizens already see it as the payment system of the future and believe that cryptocurrency assets will soon be as widely used as cash or bank cards.

However, British authorities were not always supportive of these new trends in the economic environment. As of 2021, the government’s position was strict and resolute. For example, Andrew Bailey, Governor of the Bank of England, once said that Bitcoin and other cryptocurrencies do not meet the criteria to be recognized as money.

Nevertheless, the positive attitude of the British public towards cryptocurrencies has influenced the authorities’ perspective and prompted a change in approach. Since 2022, the UK has been in the process of adapting its regulators and bureaucracy to the innovations of the cryptocurrency economy.

In April 2022, British Prime Minister Rishi Sunak name His X account stated that the UK could become a global cryptocurrency hub. The politician expressed confidence in promoting cryptocurrencies in the UK and developing new crypto businesses. Sunak called it ‘the business of the future’.

Officials decided to begin cryptocurrency adaptation gradually. The first step was to focus on educating the population. The authorities believed that it was necessary to first teach people skills before setting up businesses. The question of regulating this new activity will then arise.

Britain learned quickly from the experiences of other countries. We have built an economy around cryptocurrency by actively absorbing new plans and strategies. The country also benefited from its advantageous location between North America and Europe, linking the world’s two great economic centers.

Currently, the UK ranks 14th out of the top 20 in global cryptocurrency adoption by Chainalysis. India, Nigeria, Vietnam, the United States and Ukraine occupy the leading positions.

As we discovered, British policy has its own unique characteristics. The “British style” appears in everything from the speeches of British politicians to their strategies, attention to detail, and commitment to precision, order, and progressive action.

Questions about the future of UK cryptocurrency have already been raised by Queen Elizabeth II herself in 2022. “Leveraging the opportunities of innovative technologies in financial services, including supporting the secure adoption and resilience of cryptocurrencies.

“Outsource to technology providers,” the Queen declared.

By 2023, it has become clear that the UK is looking for alternatives to traditional investment markets due to low returns. With Bitcoin halving expected in 2024, interest in the world’s first cryptocurrency has increased in the UK. The recent NFT market crash has also strengthened faith in Bitcoin.

The high expectations of the UK public extend to several altcoins such as ETH, XRP, ADA and SOL.

In this way, the UK authorities’ political and economic approach to building the future undoubtedly inspires confidence. Crypto assets tend to be gradually and widely adopted, contributing to global cryptocurrency adaptation.

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If you want to know more interesting facts about cryptocurrency, check out our blog! You might like our articles “The UK introduces regulatory plans for stablecoins” and “Binance cancels Visa debit cards in Europe”.

SimpleSwap would like to remind you that this article is for informational purposes only and does not provide investment advice. All purchases and investments in cryptocurrency are at your own risk.