More Brits are holding cryptocurrencies, according to the latest research on consumer attitudes and behaviours towards crypto.
The regulator found that 12% of UK adults now own crypto, up from 10% in previous findings. Awareness of crypto has risen from 91% to 93%. Individuals are holding more crypto too, with the average value of crypto held by people increasing from £1,595 to £1,842.
Respondents told the FCA that information from family and friends was the most common source of information for those who had never bought crypto. But one in 10 people admitted they didn’t do any research before buying crypto.
About a third of people said they believed they could raise a complaint with the FCA if something went wrong and were seeking recourse or financial protection.
However, the UK still lacks full regulation of crypto – the FCA only regulates the asset class for marketing and anti-money laundering.
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This means if something goes wrong, it is unlikely crypto investors would be protected by regulation and they could risk losing all their money.
Dan Coatsworth, investment analyst at AJ Bell, said: “Crypto assets are extremely volatile and the regulator has dragged its feet with creating a proper framework for the asset class. To date, the FCA only regulates crypto around anti-money laundering and marketing which means there is no proper safety net if things go wrong. We could now be at a turning point as the government has indicated it will publish a proper regulatory framework next year.
“It’s clear public interest in crypto is growing, helped by the Bitcoin price shooting up this year amid US president-elect Donald Trump talking up the asset class. If Bitcoin smashes through the $100,000 level – which it is only a whisker away from doing – then even more people could find crypto on their radar.
“Regulation is long overdue as the greater the public awareness of crypto, the more we could see people dip their toe in the water, and not everyone knows what they are doing. Crypto assets are unsuitable for many investors as the asset class is extremely volatile.”
Regulation on the way
The latest research was published as the FCA started to share its approach to regulating crypto. The regulator has also published an indicative roadmap of key dates for the development and introduction of the UK’s crypto regime. The regulation regime is estimated to go live sometime in 2026.
The roadmap sets out a series of focused consultations. The FCA said this approach aims to make policy development transparent and it will help people engage by making the process more manageable and flexible for all.
Matthew Long, director of payments and digital assets at the FCA, said: “Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK. We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust.
“We’re committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right.”