According to a recent study, Russia and the UK are further along in crypto adoption than the rest of Europe. Although these countries have very different approaches, the raw data can provide important insights.
Relatively speaking, the UK is actually lagging behind, as Russia has surpassed the UK and EU member states are catching up. We expect hiring to continue to increase across the sector.
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Deployment of encryption in Europe
The EU’s comprehensive MiCA regulation has caused a lot of confusion in the local crypto market. Concerns were raised that prominent companies would leave the region, leaving it uncompetitive.
The new report helps validate some of these claims, as the two countries with the highest levels of cryptocurrency adoption in Europe are not members of the EU.
On the contrary, Russia and the United Kingdom currently dominate the adoption of cryptocurrencies in Europe. Still, the two countries are approaching the same problem from different angles.
Recently, it has ceded its lead to the UK, and the gap with other EU powers such as France and Germany is narrowing.
Aggressive new taxes are also pushing many companies out of this market, but the political system is trying to reverse the disaster. The fight is moving forward, with government figures and far-right ideologues alike pushing for more pro-Web3 reforms.
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But still, compared to other countries in Europe, the country’s adoption of cryptocurrencies seems like a fluke.
Russia sanctions avoidance
Russia, on the other hand, is actively working on the Web3 industry. Chainalysis claims that large institutional investors in Russia have adopted cryptocurrencies more than any other investor base in Europe, and the use of DeFi in sanctions evasion presents a clear use case.
Additionally, the state is also investing heavily in this area. From ruble-backed stablecoins to allegations of covert operations, Russian government loans have cropped up everywhere, giving the industry a powerful ally.
Of course, this type of operation looks quite different from the organic DeFi business sector, but it is still driving grassroots adoption.
Hopefully other European countries will continue to catch up with the UK with real adoption and increased Web3 innovation. Investment in the TradFi cryptocurrency is on the rise as the EU eases some of its worst restrictions.
This could help make the market competitive on the world stage again.
Still, there is an important lesson here. Russia’s state-sanctioned use of cryptocurrencies to evade sanctions may seem undesirable, but it has tangible benefits. If the EU wants to regain prominence in grassroots cryptocurrency adoption, it will need to offer a competitive model.
