Key Takeaways
- The FCA noted that 26% of non-crypto users would be more likely to invest if the market were regulated
- The use of long-term savings for crypto purchases rose from 19% in 2022 to 26% in 2024,
Crypto ownership in the UK has grown to 12% of the adult population, up from 10% last year, as per new research from the Financial Conduct Authority (FCA). Awareness of cryptocurrencies also reached 93% of UK adults, reflecting a steady rise in interest and familiarity. The average value of holdings increased from £1,595 to £1,842, signaling deeper investment among existing holders.
Despite the growing popularity of digital assets, the FCA emphasized the risks involved, noting that crypto remains largely unregulated in the UK. In the report, FCA noted investors are cautioned to be prepared for the possibility of losing their entire investment, as there are currently no protections in place for financial recourse.
The FCA has responded by outlining a roadmap for crypto regulation, aiming to implement a comprehensive framework by 2026. This phased approach will include consultations on stablecoin issuance, trading platforms, and decentralized finance (DeFi) activities like staking and lending. The framework seeks to provide greater transparency and engagement in policy development, with the goal of fostering a safer and more competitive sector.
The research also highlighted a lack of preparedness among some investors. While many rely on family and friends for information, one in ten admitted to making purchases without conducting any research. Around a third of respondents mistakenly believed they could file complaints with the FCA if issues arose, reflecting a misunderstanding of the regulator’s role in the largely unregulated market.
The use of long-term savings for crypto purchases rose from 19% in 2022 to 26% in 2024, while purchases made using credit cards or overdrafts increased from 6% to 14%. Market events, including the crypto crash of 2022, rising valuations since late 2023, and high-profile legal issues with major exchanges, have also influenced demand.
The FCA noted that 26% of non-crypto users would be more likely to invest if the market were regulated, underscoring the importance of clear and effective policies. This aligns with global efforts, such as the EU’s Markets in Crypto-Assets Regulation (MiCA), which is set to be fully implemented by the end of 2024. MiCA requires crypto service providers to obtain authorization and further register with the EU financial regulators in member states.
Matthew Long, the FCA’s director of payments and digital assets, emphasized the importance of balancing innovation with market integrity and consumer trust. He reiterated that the goal is to create a sustainable and competitive crypto industry in the UK.
