FCA Report: 7 million UK Adults Now Own Cryptocurrency, Marking a New Milestone for the Sector
The UK’s Financial Conduct Authority (FCA) has released new research revealing that 12% of UK adults now own cryptocurrency, up from 10% in 2022. The increase translates to approximately 7 million crypto holders, up from 5 million just two years ago. The findings underscore the growing mainstream appeal of digital assets in the UK as the regulator moves forward with plans to establish a comprehensive crypto regulatory framework.
Crypto Ownership and Investment Trends
The FCA’s research, conducted in August 2024 with over 2,000 participants, paints a detailed picture of the UK’s evolving relationship with cryptocurrency. The average value of crypto holdings has risen from £1,595 in 2022 to £1,842. Additionally, a greater proportion of investors are holding larger portfolios, with 19% of respondents reporting holdings between £5,001 and £10,000, compared to just 6% in the previous survey.
Awareness of cryptocurrencies remains high, with 93% of respondents stating they had heard of digital assets. Most investors (72%) used disposable income to fund their purchases, reflecting a cautious approach to investment. However, 20% of crypto holders cited advice from friends and family as a primary reason for entering the market.
Calls for Regulation Amid Risks
The FCA emphasized the need for robust regulation to mitigate the risks associated with cryptocurrency investments. Currently, the sector remains largely unregulated, and the FCA warns that crypto investments are high-risk, with the potential for total loss. Among non-crypto users surveyed, 26% indicated they would be more likely to invest in digital assets if regulatory safeguards were in place.
Matthew Long, FCA Director of Payments and Digital Assets, highlighted the importance of building trust and integrity in the market. “Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK,” he stated. The FCA aims to strike a balance between fostering innovation and protecting consumers, with Long adding, “We’re committed to working closely with the government, international partners, industry, and consumers to help us get the future rules right.”
The FCA’s Roadmap for Crypto Regulation
To address these challenges, the FCA has outlined a regulatory roadmap that includes a series of consultation and discussion papers scheduled over the next two years. The agenda covers key areas such as market abuse, stablecoins, staking, and crypto lending. Final policy statements are expected to be published in 2026, after which the new regulatory regime will come into effect.
Challenges and Opportunities in the Crypto Landscape
The rise in crypto ownership reflects broader trends in the digital asset ecosystem, but challenges persist. Despite high public awareness, the FCA notes that just one in three respondents believed they could seek recourse through the regulator in the event of financial loss. This underscores the need for greater consumer education alongside regulatory efforts.
Additionally, the study highlighted the risks associated with decentralized finance (DeFi) platforms, where vulnerabilities in governance and valuation practices have led to high-profile failures, such as the collapse of FTX in 2022. To address these issues, the FCA’s roadmap includes measures to enhance transparency and accountability in the sector.
