The Financial Conduct Authority (FCA) has unveiled its latest research on consumer attitudes and behaviours towards cryptocurrency, revealing a notable increase in UK crypto ownership. According to the findings, 12% of UK adults now own cryptocurrency, up from 10% in previous years, while awareness of crypto assets has risen slightly from 91% to 93%. This uptick underscores the growing role of digital assets in the financial landscape as the FCA seeks to establish a comprehensive regulatory framework.
The report also highlighted behavioural trends among crypto holders. The average value of crypto held has increased to £1,842 from £1,595, suggesting a rising confidence—or risk appetite—among investors. Interestingly, family and friends remain the most common source of information for non-owners considering crypto, while just 10% of buyers admitted to foregoing any prior research. However, misconceptions about the level of consumer protection persist, with a third of respondents mistakenly believing they could raise a complaint with the FCA if things went wrong.
Crypto in the UK: An Evolving Landscape
Cryptocurrencies remain largely unregulated in the UK, a point the FCA emphasised alongside its warning that crypto investment is high-risk and could result in total loss of funds. Despite this, the UK government and regulators have steadily moved towards defining clearer rules for the sector. The recent introduction of marketing restrictions under the FCA’s financial promotions regime and growing discussions about stablecoins and central bank digital currencies (CBDCs) indicate a tightening focus on integrating crypto into a well-regulated financial system.
The FCA’s new roadmap, which sets out key consultation dates for shaping the UK’s crypto regime, demonstrates its commitment to developing transparent, inclusive policies. This measured approach seeks to balance innovation with the need for consumer protection, market integrity, and long-term sustainability.
A Future of Collaboration and Accountability
Matthew Long, director of payments and digital assets at the FCA, commented on the research findings, saying:
“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.”
The FCA has expressed a commitment to collaborating with the Government, international partners, and industry stakeholders to shape a future regulatory framework that meets the evolving needs of the market. This collaborative strategy is critical, given the UK’s aspirations to position itself as a global leader in fintech and digital innovation.
Context: The UK’s Approach to Cryptocurrency
The UK’s stance on cryptocurrency has been characterised by cautious optimism, balancing innovation with the need for consumer protection. While recognising the transformative potential of blockchain technology and digital assets, regulators are mindful of the risks associated with volatility, fraud, and inadequate safeguards for consumers. Recent measures, such as the FCA’s regulation of crypto promotions, highlight the UK’s increasing focus on establishing a structured regulatory framework.
Tulip Siddiq MP’s keynote speech earlier this week, delivered at the City and Financial Global Tokenisation Summit, outlined the UK Government’s approach to tokenisation and regulation. Siddiq highlighted the government’s commitment to creating a financial ecosystem that leverages the benefits of tokenisation while ensuring market integrity and consumer protection. The speech underscored the government’s ambition to position the UK as a leader in financial innovation by integrating technologies like blockchain and digital assets into the broader economy.
The keynote also acknowledged the importance of public and private sector collaboration in navigating this complex landscape. With initiatives such as the exploration of a Digital Pound and the growing focus on the Regulated Liability Network, the UK is actively shaping its response to the opportunities and challenges presented by digital assets.
These efforts place the UK at the forefront of global discussions on cryptocurrency and digital finance, aligning its trajectory with international movements such as the European Union’s Markets in Crypto-Assets (MiCA) regulation. By fostering a balance between innovation and accountability, the UK aims to secure its position as a hub for digital financial technologies while safeguarding consumers and the wider financial system.
The Road Ahead
As the FCA builds its crypto regime, the interplay between fostering innovation and ensuring accountability will remain at the forefront. While the increase in crypto ownership highlights growing consumer interest, the lack of robust protections and lingering misconceptions about regulation underscore the need for urgent action. For the UK to maintain its competitive edge in financial technology, a balanced regulatory approach that instils trust and enables growth is essential.
