The Financial Conduct Authority (FCA) has initiated plans to regulate the expanding cryptocurrency sector, as 12% of UK adults now own cryptocurrencies, an increase from 10% in previous years. This move comes in response to the rising adoption of digital currencies across the nation.
According to the FCA’s latest research, public awareness of crypto assets has reached 93%, and the average value of holdings has increased from £1,595 to £1,842. Despite some regulatory oversight by the FCA, the current landscape remains fragmented, leading to uncertainty for consumers and businesses.
“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,” said Matthew Long, Director of Payments and Digital Assets at the FCA.
The FCA has introduced a roadmap aimed at addressing gaps in its regulatory framework through consultations designed to balance innovation with consumer protection. Concerns have been raised that the UK may lag behind other regions that have implemented crypto regulations more swiftly. As adoption grows, there are calls for the FCA to prioritize transparency and decisiveness in its approach.
Finder reports that 55% of UK crypto investors currently hold Bitcoin, while 33% have invested in Ethereum. The UK cryptocurrency market is projected to generate £2.9 billion ($3.77 billion) in revenue by 2027.
Long has been overseeing policy and market interventions in payments and crypto since October 2022 as Director of Payments and Digital Assets at the FCA. Previously serving as Director of the National Economic Crime Command at the National Crime Agency (NCA), he holds a PhD in Risk Management and possesses extensive investigative experience.
