The proportion of people in the UK who own cryptocurrencies has fallen sharply, as the regulator unveils long-awaited plans to place digital assets under formal supervision, according to new research published by the Financial Conduct Authority.
Research commissioned by the FCA found that just 8 percent of adults in the UK currently own cryptocurrencies such as Bitcoin or Ethereum, down from a peak of 12 percent in 2024. The findings suggest that the boom in retail cryptocurrency ownership has lost momentum due to ongoing volatility and regulatory uncertainty.
But while fewer people now own digital assets, those who remain invested tend to own larger amounts. The proportion of crypto holders with investments worth between £1,001 and £5,000 rose four percentage points to 21 percent, while the proportion of crypto holders with investments worth between £5,001 and £10,000 rose three points to 11 percent.
At the other end of the scale, smaller businesses have become rarer. The proportion of investors with crypto worth £100 or less fell to 27 percent from 32 percent last year, suggesting that rising prices for major cryptocurrencies may have forced some casual or lower value investors out of the market.
The research was based on a survey of 2,353 adults conducted between August and September and was published alongside a package of proposals from the FCA to create a comprehensive regulatory regime for digital assets.
Under the plans, crypto firms would be subject to rules covering market abuse, lending practices, custody and exchange standards, bringing oversight of the sector closer to that of traditional financial services. While much of the UK crypto market remains unregulated, the FCA said its approach would mirror its oversight of conventional finance.
However, the regulator warned that the regulation would not eliminate the inherent risks of investing in volatile digital assets.
“Establishing a regulatory framework for crypto cannot and should not eliminate all risks,” the FCA said. “Instead, it should be ensured that anyone investing in crypto does so with their eyes open.”
The proposals follow legislation introduced by the government this week to formally bring cryptoassets under the purview of the FCA, with the aim of having a full UK regulatory system in place by 2027.
Crypto firms have repeatedly warned that the UK risks falling behind the United States and the European Union, both of which have moved more quickly to create clear frameworks for digital assets. Industry insiders argue that delays could undermine Britain’s ambitions to become a global hub for crypto and blockchain innovation.
The FCA’s data suggests that while retail investor enthusiasm is waning, significant amounts continue to be invested in the sector – reinforcing the regulator’s view that clearer rules are needed as digital assets become more established in the financial system.
