The Financial Conduct Authority (FCA) in the UK has announced that they will be waiting until 2026 to launch an official crypto policy. This decision comes as 12% of adults in the UK now own digital assets, up from 10% previously. The FCA’s latest research also shows that awareness of cryptocurrencies among adults has increased to 93%.
According to the FCA’s study, the average value of crypto holdings per person has risen from £1,595 to £1,842. The research also revealed that family and friends are the most common sources of information for those who have never purchased digital assets. Surprisingly, only one in ten buyers admitted to doing no research before investing in cryptocurrencies.
Despite the growing interest in crypto, the FCA warns that digital assets remain largely unregulated in the UK and are considered high-risk investments. Investors are cautioned that they could lose all their money without any regulatory safeguards in place.
The FCA has started outlining its approach to regulating digital assets and has published a roadmap with key dates for the development and introduction of the UK’s crypto regulatory regime. This roadmap includes consultations aimed at fostering transparency and engagement in policy development.
Recent consumer behavior trends show that more individuals are considering crypto as part of their investment portfolio. Influence from friends and family plays a significant role in the decision to purchase crypto, with 20% of participants citing it as a primary reason for investing. The use of long-term savings to buy crypto has also increased, as well as purchasing with credit cards or overdrafts.
Events such as the crypto market crash in 2022, the cost-of-living crisis, criminal charges against CEOs of major exchanges, and rising crypto valuations have all impacted consumer demand for digital assets. Interestingly, 26% of non-crypto users indicated they would be more likely to invest if the market and activities were regulated.
Looking ahead, the FCA’s roadmap for 2026 includes implementing financial promotion rules, regulating stablecoin issuance and custody, introducing prudential standards, and establishing comprehensive rules for trading platforms, intermediation, lending, and staking. The goal is to create a safe, competitive, and sustainable crypto sector in the UK that is underpinned by market integrity and consumer trust.
Since October 2023, the FCA has been responsible for regulating digital asset promotions. In the first year under this new regime, the FCA has issued 1,702 alerts, taken down over 900 scam crypto websites, and removed more than 50 apps to combat illegal promotions targeting UK consumers.
