As crypto adoption continues to rise among retail investors, the U.K. Financial Conduct Authority (FCA) is outlining its plans to develop regulation for the fledgling sector.
The FCA issued new investor research on crypto, which found that 12% of adults in the U.K. now own crypto (about 7 million investors), up from 10% in a previous survey. Average holdings rose to £1,842 from £1,595, and investor awareness of crypto climbed to 93%.
The regulator noted that the research, which was carried out in August with a representative sample of adults, indicates that consumers are increasingly considering crypto-assets as part of “a wider investment portfolio.”
And it found that 26% said they are acquiring crypto from their own long-term savings (up from 19% in 2022), and that 14% have used a credit card or overdraft to buy crypto (up from 6%).
It also noted that 26% of non-cryptoasset users reported that they would be more likely to buy cryptoassets if the sector was regulated.
Alongside the research, the FCA also published its roadmap to regulating the sector, which envisions a regulatory regime for crypto being finalized in 2026, with consultations planned on a variety of subjects over the coming year, including rules for capital, custody and stablecoins due in the first half of 2025.
In the third quarter, consultations on conduct rules, registration and market abuse are scheduled, followed by rules for trading platforms, lending and staking in the fourth quarter of 2025.
“Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the U.K. We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust,” said Matthew Long, director of payments and digital assets at the FCA, in a release.
Since late 2023, the FCA has been responsible for regulating cryptoasset promotions, which so far has resulted in the FCA issuing 1,702 alerts, taking down over 900 scam websites, and taking action against 50 apps.