Cryptocurrency ownership among investors in the United Kingdom is growing, prompting increasing regulatory attention from the country’s top financial watchdog.
Over 12% of adults in the UK now hold cryptocurrency with an average value of up to 1,842 British pounds ($2,318), according to a Nov. 26 announcement by the Financial Conduct Authority (FCA). In June 2023, only 10% of the UK’s population held digital assets, according to a previous FCA survey.
The growing number of crypto holders shows an “extremely strong” appetite for crypto, according to George McDonaugh, co-managing director and co-founder of investment firm KR1.
McDonaugh said it is time for the UK to take action. “The fact that people increasingly see crypto as part of a wider investment portfolio, including for the long-term, also demonstrates that digital assets are now mainstream,” he said. “If anything else, this research shows crypto is already very popular with consumers in the UK — it’s time for regulators and lawmakers to catch up.”
FCA Crypto Roadmap. Source: FCA
Following the growing investor interest, the FCA, which is the UK’s top financial regulator, published a regulatory roadmap of plans to release comprehensive cryptocurrency regulations by 2026.
Related: Bitcoin nears 1M daily active addresses as price chases $100K
2026 FCA Crypto roadmap: What we know so far
The proposed regulatory framework comes at a critical time for cryptocurrency, giving the country a chance to gain a global advantage in Web3 innovation, according to McDonaugh. He said:
“It’s important that the UK government outlines its regulatory framework for the crypto industry so digital asset businesses can help the country’s economy grow, boost skills and create jobs.“
The roadmap proposes a series of consultations to make the regulatory process transparent and efficient. The first discussion and consultation papers are planned around stablecoin issuance and custody, due in the fourth quarter of 2024.
Then 2025 will see more consultation papers on trading platforms and decentralized finance (DeFi) activities, such as staking and lending.
Related: Republican Senate majority signals more ‘pro-crypto Congress’
The FCA plans to release the final set of rules in 2026, the same year the new regime is scheduled for full implementation.
Matthew Long, director of payments and digital assets at the FCA, said that the research results highlight the need for clear regulation. “We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust,” he said.
Interest in cryptocurrency regulation is growing in anticipation of the Markets in Crypto-Assets Regulation (MiCA), the world’s first comprehensive regulatory framework, which is set to be fully implemented in the European Union by the end of 2024.
Additional reporting by Ezra Reguerra.
Magazine: Is Bitcoin heading back to $90K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23