Originally published on: November 26, 2024
Cryptocurrency is gaining traction among UK investors, with ownership now reaching over 12% of adults in the country, according to the Financial Conduct Authority (FCA). The average value of cryptocurrency holdings per individual is around 1,842 British pounds ($2,318), indicating a growing interest in digital assets.
George McDonaugh, co-managing director and co-founder of investment firm KR1, notes that there is a significant appetite for crypto in the UK. He believes it is time for regulators to catch up with this trend and implement necessary measures to address the increasing adoption of cryptocurrencies as part of mainstream investment portfolios.
In response to the surge in investor interest, the FCA has announced plans to introduce comprehensive regulations for cryptocurrencies by 2026. This regulatory roadmap aims to provide clarity and efficiency in the regulatory process, starting with consultations on stablecoin issuance and custody in the fourth quarter of 2024.
Subsequent consultations in 2025 will focus on trading platforms and decentralized finance activities, such as staking and lending. The final set of rules is expected to be released in 2026, coinciding with the full implementation of the new regulatory framework.
Matthew Long, director of payments and digital assets at the FCA, emphasizes the importance of clear regulations to ensure market integrity and consumer trust in the cryptocurrency sector. These efforts align with the upcoming Markets in Crypto-Assets Regulation (MiCA) in the EU, highlighting a global shift towards comprehensive regulatory frameworks for digital assets.
As the landscape of cryptocurrency regulation evolves, investors and industry stakeholders are urged to stay informed and adapt to the changing regulatory environment. Stay updated on the latest developments in the cryptocurrency space through our Finance Redefined newsletter for expert insights and analysis on DeFi trends and opportunities. Subscribe today to make informed decisions with confidence.