- Over 12% of UK adults now own cryptocurrency, with average holdings rising to £1,842.
- The FCA is introducing new regulations, as many crypto owners mistakenly believe they have recourse, despite the market being unregulated.
What happened
More than 12% of UK adults now own cryptocurrency, according to the latest research from the Financial Conduct Authority (FCA). This marks an increase from 10% in previous surveys. The report reveals that popular coins like Bitcoin are part of this trend, with the average value held rising from £1,595 to £1,842. Additionally, awareness of cryptocurrencies has increased from 91% to 93% among UK adults.
However, the FCA highlights a key concern: about a third of crypto owners believe they could seek recourse from the regulator if issues arise. But, since crypto remains largely unregulated in the UK, these consumers may not get the protection they expect.
To address this, the FCA is introducing a new regulatory framework for crypto. It plans to roll out clear guidelines and hold consultations to create a safer, more competitive market. Matthew Long, FCA’s director of payments and digital assets, emphasised the need for regulations that balance innovation with market integrity and consumer trust.
Experts are warning investors about the risks. Chris Recker, legal director at Kingsley Napley, noted that many people wrongly assume the crypto space is regulated, which can lead to losses and scams. Paul Waterman, partner at GSB Wealth, echoed this caution, advising restraint due to the volatile nature of digital assets and the evolving regulatory landscape.
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Why it is important
The rise in cryptocurrency ownership in the UK, now at 12%, highlights its growing appeal. This increase, along with higher average holdings, reflects the broader acceptance of digital assets like Bitcoin. However, the Financial Conduct Authority (FCA) points out a crucial issue: many crypto owners wrongly believe they are protected by regulation. In reality, the crypto market remains largely unregulated, leaving investors vulnerable to scams and financial loss.
To address this gap, the FCA is introducing a new regulatory framework aimed at ensuring a safer and more transparent market. By rolling out clear guidelines, the FCA seeks to protect consumers while encouraging innovation. Experts caution that, despite the market’s growth, the volatility of digital assets and the lack of regulation pose significant risks. It’s vital for investors to be aware of these challenges and understand the evolving landscape as the FCA works to introduce necessary safeguards.
