Germany is seeing faster crypto adoption than the UK, with CoinShares researcher Luke Nolan pointing to stronger institutional involvement and younger investors treating digital assets as a more accessible place to deploy inherited wealth. Speaking to Cointelegraph, Nolan said German demand is being driven by a mix of family offices, wealth managers and individual advisors—while the UK remains constrained by regulatory lag.

Behind the headline difference is a clear divide in regulatory momentum: Germany and the wider EU have been working through Markets in Crypto-Assets (MiCA) licensing, while the UK’s crypto market is still “nascent” after the Financial Conduct Authority (FCA) only recently resumed retail access to certain crypto exchange-traded products.

Key takeaways

CoinShares’ Luke Nolan says Germany’s crypto adoption is advancing quickly, led by advisors and younger investors seeking exposure to inherited wealth.
Nolan argues the UK is behind largely because FCA retail crypto-product restrictions were lifted less than a year ago, leaving the market still early-stage.
Germany has 89 licensed crypto-asset service providers, representing 25.5% of firms listed on ESMA’s MiCA register.
Major German banks are moving toward crypto custody for institutions as regulatory approval milestones approach, including Deutsche Bank’s expected license window.
The UK FCA is progressing its new authorization framework, with licensing applications opening Sept. 30 and interim transitional arrangements tied to a 2027 timetable.

Why Germany is pulling ahead with younger and advisor-led demand

Nolan described Germany’s adoption trajectory as “very good progress,” emphasizing the role of wealth intermediaries. According to his comments to Cointelegraph, family offices, wealth managers and individual advisors are helping bring crypto into mainstream investment conversations—particularly among younger investors.

A notable behavioral driver, Nolan added, is the growing interest in investing inherited wealth in digital assets. That dynamic matters because it links crypto demand to long-term financial planning rather than short-term speculation, increasing the likelihood of sustained client education and repeat allocations through established advisory channels.

UK market remains “nascent” after FCA timing gaps

In contrast, Nolan said the UK is “still very much behind.” His explanation centered on timing: the FCA lifted its ban on crypto exchange-traded products for retail participants less than a year ago, following a prior ban introduced in January 2021.

That regulatory gap helps explain why the UK digital asset market is described as early-stage. Even as UK regulators move to bring broader crypto activity under formal oversight, investor access and product availability take time to rebuild after restrictive periods—especially for retail-oriented exchange-traded formats.

MiCA licensing momentum: Germany’s weight in the EU register

Germany’s regulatory groundwork under MiCA is also reflected in licensing totals. ESMA’s updated MiCA register shows Germany has 89 licensed crypto-asset service providers, accounting for 25.5% of companies in the register. ESMA’s MiCA-related listings provide the basis for this share of the market within Europe.

Germany has also been positioned as an EU leader by authorization volume. Cointelegraph previously reported that Germany topped the bloc by MiCA authorization in June, reaching 57 authorized crypto companies—underscoring that the country’s pipeline did not merely grow late in the process.

For investors and service providers, licensing concentration can be a signal of both regulatory confidence and operational readiness: firms licensed earlier often have more time to build compliant products, custody workflows and customer onboarding processes.

Big banks in Germany edge closer to institutional crypto custody

The adoption story is not confined to independent advisors. It is also drawing attention from Germany’s largest financial institutions as they prepare for regulated crypto services.

Deutsche Bank revealed on Wednesday that it was awaiting regulatory approval to launch crypto custody solutions for institutional clients in Europe, with a license expected in October. Earlier this year, Cointelegraph reported that Landesbank Baden-Württemberg—described as Germany’s largest federal bank—began offering crypto custody solutions in partnership with Bitpanda for its institutional custody platform (launched in April 2024).

Together, these moves indicate a gradual institutionalization of custody: as banks approach licensing milestones, the market may see improved infrastructure for professional-grade storage, controls and reporting—features that matter to institutional allocators who need compliant operational pathways.

UK regulators advance authorization and enforcement

While Germany presses ahead through MiCA licensing, the UK FCA is working through its own framework for regulating crypto activities. On Wednesday, the FCA issued final guidance describing when crypto activities may require authorization under the UK’s incoming regulatory regime.

According to Cointelegraph’s coverage, licensing applications will open on Sept. 30, with a Feb. 28, 2027 deadline for firms seeking transitional arrangements ahead of the new regime taking effect on Oct. 25, 2027. The timetable suggests the UK is moving toward a structured authorization environment, but it also means firms and users may still be waiting for full operational clarity until the later stages of the schedule.

The FCA also continued enforcement actions. On Thursday, it announced that it had sent a cease-and-desist letter to three London locations suspected of facilitating illegal peer-to-peer crypto trading. Separately, UK Parliament approved regulations bringing digital assets within the FCA’s regulatory remit in February, and the regulator later finalized a package of rules and guidance in June.

For readers watching how Europe’s crypto markets diverge, the key uncertainty is timing: Germany’s progress is being reinforced by MiCA licensing and bank-level infrastructure moves, while the UK’s broader framework is still rolling out. The next thing to track is how quickly FCA authorizations and transitional arrangements translate into new, compliant product availability—especially for institutions and retail channels that have been rebuilding since the end of earlier restrictions.