Crypto Ownership in the UK Hits 7 Million as FCA Plans to Regulate the Sector

The Financial Conduct Authority (FCA), the UK’s financial regulator, has revealed in a new report that the number of crypto owners in the UK has surged, with 12% of adults now holding digital assets, up from 10% in 2022. This translates to approximately 7 million UK residents, an increase of 2 million from last year’s findings.

The research, which surveyed a nationally representative sample of 2,199 UK adults, highlights the growing mainstream adoption of cryptocurrency. Along with the rise in ownership, the average value of crypto held by individuals has also increased, from £1,595 to £1,842 over the past year. This signals not only a greater number of holders but also a deeper financial commitment to crypto investments.

Among current crypto holders, a significant shift has been observed in the value of holdings. In the latest study, 19% of crypto owners reported holding between £5,001 and £10,000 in digital assets, a sharp increase from just 6% in the previous wave. This trend suggests that as the sector matures, more investors are increasing their stakes in the digital currency market.

A Shift in Buying Habits

Interestingly, the study revealed that a large proportion of crypto buyers are influenced by social factors. Despite the increasing popularity of crypto, only 10% of respondents reported conducting no research before purchasing. For many, advice from family and friends remains a primary driver, with 20% of respondents citing these sources as their main motivation for buying crypto.

FCA Director of Payments & Digital Assets, Matthew Long, noted that the findings underscored the growing need for clear and effective regulation to help users better understand the risks associated with crypto investments. He emphasized that regulation is crucial to ensure a safer, more competitive crypto market in the UK.

The Path to Regulation

The research also highlights an increasing interest in regulated crypto investments. A significant 26% of non-crypto owners said they would be more inclined to buy digital assets if they were better regulated. This sentiment reflects the broader public desire for a clear regulatory framework to support informed decision-making and safeguard consumer interests.

In line with these findings, the FCA has set out plans to introduce comprehensive regulations for the crypto sector. These measures will address various aspects of the industry, including market abuse, stablecoins, crypto staking, and lending. The regulator intends to publish a series of discussion papers, consultations, and policy statements over the next two years, with final policy statements expected to be released in 2026.

Matthew Long reiterated that the FCA’s goal is to foster a crypto sector that not only embraces innovation but also maintains market integrity and consumer trust. He added that the regulation would aim to create a sustainable environment where both consumers and businesses can thrive with confidence.

Industry Response

The FCA’s approach to crypto regulation has been met with a positive response from the crypto industry. Leading firms have expressed their support for a clear regulatory framework that could drive growth and innovation while ensuring consumer protection.

Dan Moczulski, Managing Director at eToro UK, shared his thoughts on the matter, stating, “A comprehensive regulatory regime for crypto will provide the clarity and confidence needed to encourage further innovation and growth within the sector.” He also expressed eToro’s commitment to contributing to the FCA’s consultations, aiming to help shape a future-proof crypto ecosystem that balances regulation with innovation.

Looking Ahead

As crypto adoption continues to rise in the UK, the FCA's plans to regulate the sector appear to be a crucial step in managing its growth. The upcoming regulations will likely play a pivotal role in shaping the future of the crypto market, ensuring it remains secure, competitive, and trustworthy for both investors and businesses alike.

With the FCA’s crypto roadmap in place, the UK is poised to develop a comprehensive regulatory framework that can adapt to the rapidly evolving digital asset landscape. As the sector matures, a balanced approach to regulation will be key to building a sustainable and thriving crypto market in the years to come.