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The adoption of cryptocurrency in the UK has seen a steady rise, with an estimated seven million adults now owning crypto assets, according to a recent report by the Financial Conduct Authority (FCA).
The figures indicate that approximately 12% of the UK adult population currently holds digital currencies, up from 10% in 2022, highlighting a growing interest in digital assets.
Crypto Boom In The UK
The report further provides insights into the behaviors and perceptions of UK crypto users. The average digital currency holding is valued at £1,842, with most users funding their investments through disposable income (72%).
Awareness of cryptocurrencies remains high, with 93% of the general public indicating they have heard of cryptoassets. Traditional media is the leading source for learning about digital currencies, followed closely by online news platforms, blogs, forums, and social media.
Interestingly, crypto users identified friends and family as the most common source of initial information. Meanwhile, as revealed in the report, YouGov conducted the FCA’s study in August.
The study involved interviews with over 2,000 individuals representing the UK adult population and an additional 1,000 digital currency users.
Regulatory Gaps and Rising Risks
Despite the increasing adoption, the FCA warns of significant risks associated with digital currency investments. The regulator emphasized that the digital currency sector in the UK remains largely “unregulated,” cautioning individuals that they should be prepared to lose all their money if investments go wrong.
While around a third of respondents believed they could raise a complaint with the FCA in case of disputes or losses, the regulator clarified that current protections are limited.
The FCA has been actively working to bring more structure to the crypto industry. Following legislative changes, the FCA introduced a financial promotions regime for cryptoassets to equip individuals with the tools to make informed decisions.
It also published a regulatory roadmap outlining consultations to shape the future of digital currency regulations. Matthew Long, the FCA’s director of payments and digital assets, highlighted the need for clear rules to foster a safe and competitive digital currency environment.
Long stated,
Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK. We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust. We’re committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right.
Meanwhile, according to the latest reports, the FCA will implement a digital currency regime by 2026. A road map released by the FCA revealed that the regulator “plans to publish discussion papers on market abuse and disclosures by the end of this year.”
The UK FCA will also have papers “on stablecoins, trading platforms, staking, prudential crypto exposure, and lending by early next year” based on the incoming digital currency regime.
Featured image created with DALL-E, Chart from TradingView
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