Cryptocurrency adoption in the UK has been on a steady rise, with an estimated seven million adults now owning crypto assets, according to a recent study. a report By the Financial Conduct Authority (FCA).
Figures show that approximately 12% of the UK adult population currently own cryptocurrencies, up from 10% in 2022, highlighting the growing interest in digital assets.
Cryptocurrency boom in the UK
The report also provides insight into the behaviors and perceptions of cryptocurrency users in the UK. The average value of the cryptocurrency is £1,842, with most users funding their investments through disposable income (72%).
Cryptocurrency awareness remains high, with 93% of the general public indicating they have heard of crypto assets. Traditional media is the primary source of learning about cryptocurrencies, closely followed by online news platforms, blogs, forums, and social media.
Interestingly, cryptocurrency users identified friends and family as the most common source of primary information. Meanwhile, as the report revealed, YouGov conducted the FCA study in August.
The study included interviews with more than 2,000 individuals representing the UK adult population and an additional 1,000 digital currency users.
Regulatory gaps and increased risks
Despite the growing adoption, the Financial Conduct Authority (FCA) warns of the significant risks associated with cryptocurrency investments. The regulator stressed that the UK cryptocurrency sector remains largely “unregulated”, and warned individuals that they should be prepared to lose all their money if investments go wrong.
While around a third of respondents believe they can complain to the Financial Conduct Authority (FCA) in the event of disputes or losses, the regulator has made it clear that current protections are limited.
The Financial Conduct Authority (FCA) is actively working to provide more structure to the cryptocurrency industry. Following legislative changes, the Financial Conduct Authority (FCA) introduced a financial promotion system for crypto assets to provide individuals with the tools to make informed decisions.
It has also published a regulatory roadmap outlining consultations to shape the future of cryptocurrency regulations. Matthew Long, Director of Payments and Digital Assets at the FCA, highlighted the need for clear rules to promote a safe and competitive digital currency environment.
Long male,
Our research findings highlight the need for clear regulation that supports a safe, competitive and sustainable cryptocurrency sector in the UK. We want to develop a sector that embraces innovation and is supported by market integrity and consumer confidence. We are committed to working closely with government, international partners, industry and consumers to help us get future rules right.
Meanwhile, according to another ReportsHowever, the FCA will implement a digital currency regime by 2026. The FCA’s roadmap revealed that the regulator “plans to publish discussion papers on market abuse and disclosures by the end of this year.”
The UK’s Financial Conduct Authority (FCA) will also have papers “on stablecoins, trading platforms, staking, prudential exposure to cryptocurrencies and lending by early next year” based on the incoming digital currency regime.
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