According to a recent report by BitcoinCasinos.com, the crypto industry is going to mark a remarkable increase this year. Notably, the United States will lead the race but the United Kingdom will also have a significant role in the expansion.
The data compiled in the report suggests that the global crypto market is expected to gross $37.80 billion in revenue this year. The net amount is going to be about 105% more than that of 2022. In addition, almost half of that value will come from the US, the world’s largest crypto market.
Although the US market accounts for the largest share of global crypto revenues, another crypto market is growing significantly more. Data suggests that the UK has the fastest-growing crypto industry among the top five markets. The revenue surged by a massive 125% YoY to $1.89 billion in 2023.
However, this is not so surprising considering the rising concerns that America might lose crypto players to other jurisdictions due to regulatory uncertainty.
Sources reveal that the expected growth of the UK’s crypto industry can also be attributed to the country’s highly developed financial sector which has made it easier for cryptocurrency companies to access funding and resources. Additionally, the region’s location, connectivity, and highly skilled workforce have made it an attractive destination for cryptocurrency companies looking to expand their operations.
Currently, the nation is home to a large number of cryptocurrency users and investors. Data suggests that over three million cryptocurrency users are estimated in the UK, with a combined wealth of over £3 billion or $3.72 billion. Additionally, this number is expected to grow as more individuals and businesses recognize the potential of cryptocurrencies as a legitimate asset class.
Another survey by a different firm found that nearly 80% of institutional investors who participated in a survey in the UK view cryptocurrencies as a viable investment option. In addition, several large UK-based companies, including the food delivery giant Eat and the travel booking website Expedia, accept Bitcoin as a payment method.
Additionally, this trend could continue as more businesses recognize the benefits of accepting cryptocurrencies. Such as lower transaction fees and faster payment processing times.
Over the past few years, the UK has been rising as Europe’s most prominent crypto economy. Even though the region was far behind the most famous crypto economies in the total number of users and revenue, the UK saw Europe’s second-largest crypto trade value per user last year, following Italy.
The UK’s cryptocurrency industry has the fastest-growing market size and the highest user penetration rate, especially among the top five crypto markets globally. While the UK crypto market had around 9.6 million users two years ago, with a 14.2% user penetration rate.
After that, the number of users surged by 82% to 17.6 million, while the user penetration rate hit 25.70% in 2023. According to the report, the figure is expected to jump over 30% by 2025, with more than 21.30 million crypto users in the country. The high user penetration rate grows from several factors including the overall economic development.
Additionally, the country’s relatively supportive regulatory climate has boosted confidence among investors and made cryptocurrencies more accessible to the general public.
While the Financial Conduct Authority (FCA) was maintaining a strict approach initially, recently it has taken a U-turn. The regulator wants to collaborate with crypto companies to develop a regulatory framework for the industry. This has been one of the challenges faced by cryptocurrency players in the country as well.
In addition, lawmakers in the UK have been relatively supportive of cryptocurrencies compared to other countries. To support the British PM’s aim of making the region a crypto hub, the finance minister promised the masses timely and sensible regulation.