Emily Walker
The popularity of cryptocurrency in the UK is on the rise, with approximately seven million adults owning crypto assets, according to a recent Financial Conduct Authority (FCA) report.
Currently, around 12% of adults in the UK possess digital currencies, an increase from 10% in 2022, reflecting a growing interest in this financial technology.
The Rise of Cryptocurrency in the UK
The FCA report also sheds light on the characteristics and attitudes of crypto users in the UK. On average, individuals hold £1,842 in digital currencies, with 72% using their disposable income for investments.
Public awareness of cryptocurrencies is notably high, with 93% of adults acknowledging familiarity with crypto assets. Most people learn about these digital currencies through traditional media, while online news, blogs, forums, and social media are also popular sources.
Interestingly, many crypto users credit friends and family as their primary sources of information. The FCA’s study, conducted by YouGov in August, surveyed over 2,000 adults representing the UK population and included an additional 1,000 current crypto users.
Concerns Over Regulation and Risks
Despite the growing adoption, the FCA has highlighted significant risks tied to investing in digital currencies. The regulator noted that the UK crypto sector remains “largely unregulated,” advising individuals to be cautious and prepared for the possibility of losing their entire investment.
About a third of respondents believed they could lodge complaints with the FCA regarding disputes or losses, but the regulator pointed out that protections currently available are limited.
To enhance the structure of the crypto industry, the FCA has been implementing new regulations. They recently established a financial promotions regime to help individuals make informed decisions in this space.
The FCA also released a regulatory roadmap that describes ongoing consultations aimed at shaping future digital currency regulations. Matthew Long, the FCA’s director of payments and digital assets, emphasized the necessity of clear regulations to promote a safe and competitive digital currency landscape.
Long remarked,
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.
Looking ahead, the FCA aims to establish a digital currency regulatory framework by 2026. Their upcoming plans include discussion papers addressing market abuse and disclosures by the end of this year, along with documents regarding stablecoins, trading platforms, staking, and lending in early next year.
Featured image created with DALL-E, Chart from TradingView