UK Crypto Ownership Climbs to 12%, FCA Research Finds

Crypto adoption in the UK has surged, with 12% of UK adults now owning digital assets, up from 10% in 2022, according to new research by the Financial Conduct Authority (FCA).

Key Findings

The FCA’s study, based on a nationally representative survey of 2,199 UK adults, estimates that 7 million people now own crypto in the UK, a significant rise from 5 million in 2022.

• Average Holdings: The average value of crypto held has risen from £1,595 to £1,842.
• Larger Portfolios: 19% of crypto holders now own between £5,001 and £10,000, compared to just 6% in the previous findings.
• Motivations: 20% cited friends and family as their primary reason for purchasing crypto.
• Research Gap: One in 10 respondents admitted to doing no research before investing.

Regulation and Trust

The FCA’s Director of Payments & Digital Assets, Matthew Long, emphasized the importance of regulation to safeguard consumers and build trust.

“The findings highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK,” Long said.

The study also found that 26% of non-crypto users would be more likely to invest if the sector were regulated.

Crypto Staking and Risks

The FCA noted the growth of crypto staking, a trend that has grown significantly over the past year. The regulator is now examining the risks associated with staking and aims to address them through proposed regulations.

“We will consider the risks highlighted by the behaviors in this research and reduce them through regulation,” the FCA stated.

A Roadmap for UK Crypto Regulation

The FCA has released its crypto regulatory roadmap, developed after consulting with industry leaders, firms, and banks.

The roadmap outlines:

• Discussion Papers: Addressing market abuse and stablecoins.
• Consultation Papers: On crypto staking, lending, and other emerging practices.
• Final Policy Statements: Expected by 2026, following which the new regime will go live.

The FCA aims to balance innovation with integrity and consumer trust, shaping a crypto sector that aligns with its goals for safety and competition.