Cryptocurrency ownership among investors in the United Kingdom is on the rise, prompting increasing regulatory attention from the country’s top financial authority. According to a Nov. 26 announcement by the Financial Conduct Authority (FCA), over 12% of UK adults now hold cryptocurrency, with an average value of up to 1,842 British pounds ($2,318). This marks an increase from June 2023, when only 10% of the population held digital assets.
George McDonaugh, co-managing director and co-founder of KR1, described the growing number of crypto holders as evidence of an “extremely strong” appetite for digital assets. McDonaugh argued that it is time for the UK to take action, as digital assets are becoming a mainstream part of investment portfolios. He added, “If anything else, this research shows crypto is already very popular with consumers in the UK — it’s time for regulators and lawmakers to catch up.”
In response to increasing investor interest, the FCA has published a regulatory roadmap outlining plans for comprehensive cryptocurrency regulations by 2026. The proposed framework is seen as crucial for positioning the UK as a competitive player in the growing digital asset sector. The roadmap includes a series of consultations, starting with stablecoin issuance and custody in the fourth quarter of 2024, followed by consultations in 2025 on trading platforms and decentralized finance (DeFi) activities such as staking and lending.
Matthew Long, director of payments and digital assets at the FCA, emphasized the importance of developing clear regulations to support innovation while maintaining market integrity and consumer trust. “We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust,” Long stated.
The UK’s approach comes as other jurisdictions also move to establish clearer regulatory guidelines. The European Union’s Markets in Crypto-Assets (MiCA) regulation is expected to be fully implemented by the end of 2024, while the US is also perceived as becoming more crypto-friendly. The FCA aims to release its final set of rules in 2026, coinciding with the planned full implementation of the new regulatory regime.