In summary
- The UK FCA reported a 12% increase in Cryptocurrency adoption among British adults, equivalent to 7 million holders, with an average of £1,842 in crypto assets per person.
- The regulator highlighted the need for a clear regulatory framework to improve consumer confidence and minimize risks, while it plans to implement full regulations by 2026.
- Companies such as eToro and CryptoUK applaud the regulatory efforts, considering them key to driving innovation and attracting investment to the crypto sector in the United Kingdom.
UK regulator the Financial Conduct Authority (FCA) has published new research revealing that 12% of UK adults now own cryptocurrency, an increase from 10% in previous findings.
According to the nationally representative study of 2,199 UK adults, the figure extrapolates to 7 million cryptocurrency holders, up from 5 million in 2022.
The average value of cryptocurrency held by people has increased in the same period, from £1,595 to £1,842. Among cryptocurrency holders, the number of adults holding more cryptocurrency has also increased, with 19% holding between £5,001 and £10,000 in cryptocurrency, up from 6% in the “previous wave.”
In a statement shared with Decrypt, a spokesperson for cryptocurrency trade association CryptoUK said the findings were a “defining moment for the industry,” adding that “cryptocurrency is now mainstream in the UK.”
Only one in 10 study participants said they had not done any research before purchasing cryptocurrency. But 20% of respondents cited “friends and family” as the main reason for buying cryptocurrencies.
In a note accompanying the research, Matthew Long, Director of Payments and Digital Assets at the FCA, said the study’s findings highlighted the “need for clear regulation that helps people better understand the risks.” The study also found that 26% of non-crypto users would be “more likely” to buy cryptocurrencies if they were regulated.
The FCA noted the growth of cryptocurrency staking over the past year, adding that it will “consider the risks highlighted by the behaviors in this investigation” and how they can be reduced through its proposed regulations.
The findings “highlight the need for clear regulation that supports a safe, competitive and sustainable crypto sector in the UK,” Long said, adding that the FCA wants to “develop a sector that embraces innovation and is underpinned by market integrity and consumer confidence”.
Alongside its investigation, the FCA has shared its approach to regulating cryptocurrencies, following consultations with industry organisations, crypto companies and banks. The FCA’s crypto roadmap sets out a series of discussion papers, consultation papers and policy statements to be published over the next two years, covering topics such as market abuse, stablecoins, staking and cryptocurrency lending.
Final policy statements are expected to be published in 2026, after which the regime will come into force.
Crypto companies have widely welcomed the news. In a statement shared with Decrypt, eToro UK CEO Dan Moczulski said, “A comprehensive regulatory regime for cryptocurrencies will provide the clarity and confidence needed to encourage further innovation and growth within the sector.” He added that eToro looks forward to “actively contributing” to the upcoming FCA consultations, “to help shape a sustainable and forward-thinking crypto ecosystem.”
A spokesperson for CryptoUK said: “We look forward to the government’s plans to reveal its regulatory framework next year,” and that its members “need certainty and confidence to be able to invest more in the UK.” They added that international investors “are also watching the government’s moves.”
Edited by Stacy Elliott.
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