UK cryptocurrency ownership rises to 12% as FCA prepares new regulations

As a seasoned researcher who has closely followed the evolution of digital assets and their impact on global financial markets, I find myself both intrigued and cautiously optimistic about the recent surge in cryptocurrency ownership among UK investors and the FCA’s regulatory response.

Investor ownership of cryptocurrencies in the UK is on the rise, leading to a heightened focus on regulation from the nation’s primary financial oversight body.

Approximately one out of every eight adults in the United Kingdom currently owns cryptocurrency, with an average worth between £1,842 and $2,318, as stated in a declaration made on November 26th by the Financial Conduct Authority (FCA).

In June 2023, just 10% of people in the UK owned digital assets. However, a recent survey by the FCA shows that this number has risen to 12%. This represents a substantial jump in the adoption of digital assets within the UK population.

The rising number of individuals owning cryptocurrencies indicates a “remarkably robust” interest in cryptos, as per George McDonaugh, the co-managing director and co-founder of KR1. This rephrasing aims to convey the same meaning while making it more accessible and conversational for readers.

According to George McDonaugh, the increasing number of people owning cryptocurrencies demonstrates a remarkably robust interest in this digital currency sector. He is the co-managing director and co-founder of KR1.

As a forward-thinking crypto investor, I firmly believe that it’s high time for the UK regulatory bodies to align themselves with the current trends. The growing acceptance of cryptocurrencies as part of a diverse investment portfolio, both short-term and long-term, is a clear indicator of their mainstream status. This research underscores the popularity of digital assets among UK consumers, suggesting that it’s past due for our regulators and lawmakers to adapt and catch up with this burgeoning sector.

In response to rising investor curiosity, the Financial Conduct Authority (FCA), the primary financial regulator in the UK, has unveiled a regulatory blueprint aiming to establish extensive guidelines for cryptocurrencies, with the goal of finalizing these regulations by the year 2026.

2026 FCA Crypto roadmap: What we know so far

The proposed regulatory framework comes at a critical time for cryptocurrency, giving the country a chance to gain a global advantage in Web3 innovation, according to McDonaugh. He said:

“It’s important that the UK government outlines its regulatory framework for the crypto industry so digital asset businesses can help the country’s economy grow, boost skills and create jobs.“

The roadmap proposes a series of consultations to make the regulatory process transparent and efficient. The first discussion and consultation papers are planned around stablecoin issuance and custody, due in the fourth quarter of 2024.

In the coming year, we’ll release additional discussion documents focusing on trading platforms and Decentralized Finance (DeFi) operations like staking and lending.

In 2026, the final set of regulations will be unveiled, marking the same year when the new system is scheduled for complete execution.

Matthew Long, head of Payments and Cryptocurrencies at the FCA, underscored the importance of definitive regulations based on recent findings. “Our aim is to foster an industry that thrives on innovation while being grounded in market honesty and customer confidence,” he stated.

The curiosity surrounding cryptocurrency regulations is increasing as the implementation of the Markets in Crypto-Assets Regulation (MiCA) – the globe’s initial all-encompassing regulatory structure for digital currencies – is scheduled to be completed within the European Union by 2024.

Additional reporting by Ezra Reguerra.

2024-11-26 16:02

2026 FCA Crypto roadmap: What we know so far

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