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UK cryptocurrency ownership reaches 12% as FCA acts

UK cryptocurrency ownership reaches 12% as FCA acts

GrafaGrafa2024/11/27 06:40
By:Liezl Gambe

Cryptocurrency ownership in the UK has grown to 12% of the adult population, up from 10% in June 2023, according to the Financial Conduct Authority (FCA).

The average crypto investment value now stands at £1,842 ($2,318), signaling increased mainstream adoption of digital assets in the country.

The FCA, the UK’s top financial regulator, announced plans to implement comprehensive cryptocurrency regulations by 2026.

This regulatory roadmap comes amid rising interest in crypto investments, which George McDonaugh, co-managing director of KR1, described as evidence of “extremely strong” appetite for digital assets.

"It’s time for regulators and lawmakers to catch up," McDonaugh stated, emphasising the importance of aligning regulations with consumer interest and the growing role of crypto in long-term investment portfolios.

The FCA’s roadmap outlines a phased approach, beginning with consultations on stablecoin issuance and custody in late 2024.

In 2025, the focus will shift to trading platforms and decentralised finance (DeFi) activities like staking and lending.

The final rules will be released in 2026, coinciding with the full implementation of the new regulatory regime.

Matthew Long, the FCA’s director of payments and digital assets, highlighted the need for regulation to ensure consumer trust and market integrity while fostering innovation.

"We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust," he stated.

The UK’s regulatory efforts align with global trends, including the anticipated implementation of the European Union’s Markets in Crypto-Assets Regulation (MiCA) by the end of 2024.

These initiatives aim to position the UK as a leader in Web3 innovation by establishing a clear regulatory framework that supports economic growth, skills development, and job creation in the digital asset sector.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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