The Financial Conduct Authority (FCA) of the United Kingdom has recently divulged findings from its latest research, indicating a noticeable uptick in cryptocurrency adoption among UK residents. This research, involving a nationally representative sample of 2,199 adults, illuminates a growing interest in digital assets, with the percentage of UK adults owning cryptocurrency rising from 10% to 12%. Projected across the nation, this suggests that the number of crypto holders in the UK has swollen from 5 million to approximately 7 million.
In tandem with the rise in ownership, there’s been a discernible increase in the average value of cryptocurrency held by individuals, climbing from £1,595 to £1,842. Notably, there’s also been a significant uptick in the segment of the population investing heftier amounts into cryptocurrency, with 19% now holding between £5,001 and £10,000, a steep rise from 6% in the prior wave of the study.
Interestingly, while the surge in crypto investments reflects a broader acceptance and interest, it also revealed a notable portion of the population, about one in ten, diving into crypto investments without prior research. However, 20% of participants cited influence from friends and family as a pivotal reason behind their crypto purchases, underscoring the social factors steering financial decisions in the crypto space.
Responding to these insights, Matthew Long, the FCA’s Director of Payments & Digital Assets, underscored the pressing need for robust regulations to help demystify the risks involved for consumers. Moreover, the research highlighted that a quarter of respondents not yet in the crypto market would consider investing if the industry were regulated, pointing to the potential for regulatory frameworks to both protect consumers and catalyze further adoption.
In light of these findings, the FCA has announced plans to delve deeper into crypto staking practices over the past year, aiming to identify and mitigate risks through forthcoming regulations. This initiative is part of a broader ambition for the FCA to foster a crypto sector that is both innovative and grounded in consumer trust and market integrity.
To this end, the FCA has laid out its approach to crypto regulation, following consultations with a wide array of stakeholders including industry organizations, crypto firms, and banks. This roadmap includes a sequence of discussion papers, consultation papers, and policy statements addressing key topics such as market abuse, stablecoins, and crypto staking and lending, set to unfold over the next two years.
These discussions are expected to culminate in final policy statements by 2026, marking the establishment of a comprehensive regulatory regime for the crypto sector in the UK. Such developments have been met with enthusiasm from crypto businesses, with companies like eToro expressing support for the clarity and confidence that a well-defined regulatory framework promises. Dan Moczulski, eToro UK’s Managing Director, voiced the company’s eagerness to contribute to the FCA’s consultations, aiming to sculpt a forward-looking and sustainable crypto ecosystem.