United Kingdom crypto ownership rises to 12% as FCA prepares new regulations
The FCA, the UK’s top financial regulator, has produced a regulatory roadmap outlining ambitions to implement complete cryptocurrency laws by 2026.
Cryptocurrency ownership among investors in the United Kingdom is surging, drawing greater regulatory scrutiny from the country’s top financial watchdog.
According to a Financial Conduct Authority (FCA) report on November 26, more than 12% of adults in the UK already own cryptocurrencies worth up to 1,842 British pounds ($2,318) on average. According to a prior FCA poll, barely 10% of the UK population owns digital assets as of June 2023.
According to George McDonaugh, co-managing director and co-founder of investment firm KR1, the growing number of cryptocurrency holders demonstrates a “extremely strong” interest for the technology.
McDonaugh stated that it is time for the UK to intervene. “The fact that people increasingly see crypto as part of a wider investment portfolio, including for the long-term, also demonstrates that digital assets are now mainstream,” the economist said. “If anything else, this research shows crypto is already very popular with consumers in the UK — it’s time for regulators and lawmakers to catch up.” Following increased investor interest, the FCA, the UK’s leading financial regulator, issued a regulatory roadmap outlining ambitions to establish comprehensive cryptocurrency laws by 2026.
2026 FCA Crypto roadmap: What we know so far
According to McDonaugh, the proposed legislative framework comes at a key time for bitcoin, providing the country with an opportunity to acquire a global advantage in Web3 innovation. He pointed out: “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 offers a series of discussions to improve the regulatory process’ transparency and efficiency. The first discussion and comment papers, scheduled for the fourth quarter of 2024, will focus on stablecoin issuance and custody.
In 2025, there will be more consultation papers on trading platforms and decentralised finance (DeFi) activities like as staking and lending.
The FCA intends to announce the complete set of rules in 2026, the same year that the new system will be fully implemented. According to Matthew Long, the FCA’s director of payments and digital assets, the research findings underline the importance of clear regulation. “We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust,” he told reporters.
Interest in cryptocurrency regulation is developing ahead of the Markets in Crypto-Assets Regulation (MiCA), the world’s first complete regulatory framework, which is scheduled to be fully implemented in the European Union by the end of 2024.
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