According to research from the Financial Conduct Authority, more than one in ten Brits now own cryptocurrency. The regulator reports that 12% of UK adults currently own Bitcoin and other digital currencies, an increase from 10% in previous research. Additionally, awareness of cryptocurrencies has risen from 91% to 93%, and the average value held by individuals has grown from £1,595 to £1,842.
Approximately one-third of respondents believe they could file a complaint with the FCA regarding issues with their crypto investments in pursuit of recourse or financial protection. However, the FCA emphasizes that this is unlikely, as the crypto sector remains largely unregulated in the UK.
Change is on the horizon, as the FCA is set to unveil its regulatory approach for cryptocurrencies, including a roadmap outlining key dates for the development and implementation of new regulations, along with a series of focused consultations.
Matthew Long, director of payments and digital assets at the FCA, states, “Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK. We aim to foster an environment that encourages innovation while maintaining market integrity and consumer trust.”
Legal director Chris Recker of Kingsley Napley, specializing in digital assets, remarks, “The FCA’s research illustrates the growing appeal of crypto assets among UK investors, ranging from novices to experienced professionals. However, there is often a misconception that this space is more regulated than it actually is, which is concerning. Investors not only risk losing their money due to poor decisions but also face threats from scammers who operate within this sector.”
Paul Waterman, partner at GSB Wealth, adds, “While cryptocurrencies continue to draw attention and grow, we, as wealth planners, are cautious about incorporating them into comprehensive financial strategies at this point. These digital assets are primarily seen as a medium of exchange or a store of value. However, due to their highly volatile nature, their actual value remains questionable. Furthermore, the evolving regulatory environment surrounding cryptocurrencies and the limited recourse available for investors present additional risks.”