More Adults Become Crypto Owners in UK

A latest research by the UK’s Financial Conduct Authority on consumer attitudes and behaviours towards crypto showed that 12% of UK adults now own crypto as on August this year, up from 10% in previous findings in June last year.

As many as seven million adults are holding digital assets as on today compared with five million in 2022 and the awareness of crypto also rose from 91% to 93%.

The average value of crypto held by people increased from $2007.31 to $2318.16 and respondents to the survey said that information from family and friends was the most common source for those who had never bought crypto. Only 1 in 10 people say they did not do any research before buying crypto, the FCA said on Tuesday.

The FCA also expressed concern over the rise in borrowing to finance crypto purchases. While most buyers use readily available cash, 14% have turned to credit cards or other forms of borrowing, up from 6% in 2022.

Additionally, more crypto owners are engaging in “staking,” temporarily allocating their tokens to support blockchain networks in exchange for rewards, the report said.

The findings also said that around a third of people said that they believed they could raise a complaint with the FCA if something went wrong and were seeking recourse or financial protection. Currently, crypto remains largely unregulated in the UK and high-risk. If something goes wrong, it is unlikely you will be protected so you should be prepared to lose all your money.

The research comes as the FCA has started to share their approach to regulating crypto. The FCA has also published an indicative roadmap of key dates for the development and introduction of the UK’s crypto regime.

The roadmap sets out a series of focused consultations and this approach aims to make policy development transparent and help people engage by making the process more manageable and flexible for all.

Regulations Need of the Hour

Matthew Long, director of payments and digital assets at the FCA, said that their research results highlighted the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK.

“The FCA wants to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust.  We are committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right,” he added.

The FCA has taken steps to address illegal crypto asset promotions in the UK, despite its limited regulatory scope. Since the implementation of new legislation on 8 October 2023, the FCA has been responsible for overseeing crypto asset promotions. In the first year, it issued 1702 alerts, removed over 900 scam websites, and took down more than 50 apps.

To assist payment service providers, the FCA also plans to publish a webpage outlining the risks for firms offering services to unregistered crypto companies. It will also highlight positive actions firms can take to address these risks.