12% of UK adults now own crypto, FCA prepares for action

The United Kingdom’s digital assets-linked community is growing rapidly, according to the latest report published by the Financial Conduct Authority (FCA). Data shows that crypto awareness in the UK has jumped from 91% to 93%, and the average value of crypto holdings rose from £1,595 to £1,842.

The global crypto industry has recorded a massive upward run over the past year. The cumulative digital assets market cap, which stood around $1.6 trillion at the end of 2023, now stands at a huge $3.1 trillion. Bitcoin (BTC) price breached the $99,000 mark recently after surging by over 110% on a year-to-date (YTD) basis.

UK crypto craze surges

As per the report,  family and friends remain the most common source of crypto information for first-time buyers. However, only 1 in 10 did zero research before buying. It added that a third of people believe they can seek recourse from the FCA if things go wrong, despite crypto being largely unregulated and high-risk.

FCA mentioned that if something goes wrong in crypto, holders are unlikely to be protected. It added that prospective investors are urged to prepare for the possibility of losing all their money.

This research comes as the authority has shared its roadmap for the UK’s crypto regime highlighting focused consultations to create clear, flexible, and transparent policies. Matthew Long, FCA’s director of payments and digital assets stated that these results show a need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the country.

Long further added that “the FCA wants to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust.”

The authority is working with the government, international partners, and stakeholders to ensure regulations reflect industry needs while protecting consumers.

FCA wipes out 900 crypto scam sites

The FCA report mentioned that it is continuously taking action to make the crypto market safer. This includes strict actions taken against firms illegally promoting crypto assets to the UK population.

Since October 2023, the FCA has clamped down on crypto promotions by issuing 1,702 alerts, removing more than 900 scam websites, and taking down over 50 apps promoting crypto illegally. In order to guide payment services working with crypto firms, the authority has published a webpage detailing risks and best practices to address concerns about unregistered firms promoting illegally.

With £11 million invested in awareness efforts across social media, the agency is focusing on transparency and consumer protection through campaigns like ScamSmart which it launched to educate consumers.