CRYPTO USERS IN EUROPE DECREASED BY 12M FROM 43M, WHILE ASIA EXPERIENCED EXPLOSIVE 100% GROWTH REACHING 260M USERS
Data acquired by Finbold reveals a significant drop in the number of crypto users in Europe, despite global figures reaching a staggering 417.5m. The decline in Europe coincides with the implementation of the Markets in Crypto Assets (MiCA) law which was approved in October 2022 and aims to establish a comprehensive legal framework for the crypto market, potentially setting a global standard.
The number of crypto users in Europe has plummeted by 12m compared to last year’s figure of 43m. In contrast, Asia has experienced explosive growth, with 260m users recorded as of May 2023, marking a remarkable 100% increase from the previous year’s count of 130m.
North America follows with 54m users, while a breakdown of ownership by country reveals that Thailand leads the pack in 2023, claiming a 9.32% share. India secures the second spot with 7.23%, closely followed by Brazil at 6.98%. The UK also registers a respectable figure of 5.52%.
Although the cryptocurrency sector faces challenges such as regulatory ambiguity and a prolonged market downturn, hindering widespread adoption, it has witnessed substantial growth in user numbers over the past year.
The Finbold research report highlights that despite the crypto sector enduring a challenging phase characterized by a prolonged bear market, the growth in global user numbers remains remarkable. This growth has persisted despite significant events such as the collapse of the FTX crypto exchange and the Terra (LUNA) ecosystem crash, which have undermined trust within the industry.
Following Europe’s lead, various jurisdictions, including the US, are intensifying their scrutiny of the crypto sector. The Securities and Exchange Commission (SEC) has filed lawsuits against two major industry players – cryptocurrency exchange Binance and crypto trading platform Coinbase. These two prominent cases are likely to discourage investor involvement and will likely force US crypto companies to relocate to other jurisdictions.
However, despite concerns, the growth in crypto users can still be attributed to factors such as the fear of missing out (FOMO) phenomenon and increased mainstream adoption.
As the cryptocurrency market aims to recover from the ongoing downturn, the number of users is expected to rebound, especially in regions that establish favorable regulations such as UAE.
Additionally, the demand for cryptocurrencies among banks and financial institutions, along with untapped potential in emerging economies, may further contribute to the growth of user numbers.