Cryptocurrency ownership in the United Kingdom has surged, with 12% of adults now holding digital assets, according to a Financial Conduct Authority (FCA) announcement on Nov. 26. This marks a significant increase from 10% in June 2023, with the average crypto portfolio valued at £1,842 ($2,318). The findings underscore a growing mainstream appeal, as many investors view cryptocurrency as part of their long-term investment strategy.

Regulatory Framework in the Works

In response to the rising interest, the FCA has published a roadmap outlining plans to introduce comprehensive cryptocurrency regulations by 2026. The framework aims to establish market integrity, bolster consumer trust, and position the UK as a leader in Web3 innovation.

Roadmap Highlights

The FCA’s roadmap includes multiple stages:

• 2024: Initial consultations on stablecoin issuance and custody.
• 2025: Broader discussions on trading platforms and decentralised finance (DeFi), including staking and lending.
• 2026: Finalisation and implementation of the regulatory regime.

Matthew Long, director of payments and digital assets at the FCA, emphasised the importance of clear guidelines to support innovation and economic growth while safeguarding consumers.

A Global Competitive Edge

The regulatory push comes as the European Union’s comprehensive crypto regulation, Markets in Crypto-Assets Regulation (MiCA), is set to take full effect by the end of 2024. Industry leaders like George McDonaugh of KR1 believe this is a pivotal moment for the UK to attract digital asset businesses and create jobs.

“The growing appetite for crypto shows it’s already a mainstream asset,” McDonaugh stated. “It’s time for lawmakers to catch up.”