FCA Research Highlights Need for Crypto Regulation in the UK
FCA Research– The latest research from the UK’s Financial Conduct Authority (FCA) shows a significant increase in crypto ownership, with 12% of UK adults now holding cryptocurrencies, up from 10% in previous studies. This rise equates to approximately 7 million crypto holders in the UK, an increase from 5 million in 2022. The findings come from a national survey of 2,199 UK adults, offering valuable insights into the evolving crypto landscape.
In addition to the increase in the number of crypto owners, the average value of crypto holdings has also risen. The average amount held has climbed from £1,595 to £1,842. Notably, the number of people holding higher amounts of crypto has also grown. Now, 19% of crypto holders have between £5,001 and £10,000 in digital assets, a significant rise compared to just 6% in the previous wave.
The FCA’s research also revealed that many UK crypto buyers still rely heavily on informal sources for guidance, with 20% citing friends and family as their primary source of advice when purchasing crypto. Additionally, only 10% of crypto buyers admitted to not conducting any research before making their purchases.
Clear Regulation Needed, Says FCA
Matthew Long, FCA Director of Payments & Digital Assets, commented on the study, stating that it underscores the need for clear regulation that helps people better understand the risks of crypto investments. The survey highlighted that 26% of non-crypto users would be more likely to invest in digital assets if they were properly regulated.
The FCA is particularly focused on the rise of crypto staking and its associated risks, and it plans to address these concerns through upcoming regulatory measures. As Long noted, the goal is to support a safe, competitive, and sustainable crypto sector in the UK, one that encourages innovation while maintaining market integrity and consumer trust.
The research findings align with the FCA’s ongoing efforts to develop a regulatory framework for the crypto sector. This framework will be built through ongoing consultations with industry stakeholders, including crypto firms, financial institutions, and banks. According to the FCA’s crypto roadmap, a series of papers covering topics such as stablecoins, market abuse, and crypto staking and lending will be released over the next two years. Final policy statements are expected by 2026, after which the new regulatory regime will be implemented.
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