The proportion of people in Britain holding cryptocurrencies has fallen sharply, according to new research published by the Financial Conduct Authority, as the regulator unveils long-awaited plans to bring digital assets under formal supervision.
Research commissioned by the FCA found that just 8 per cent of UK adults now own cryptocurrencies such as bitcoin or ethereum, down from a peak of 12 per cent in 2024. The findings suggest that the boom in retail crypto ownership has lost momentum amid ongoing volatility and regulatory uncertainty.
However, while fewer people now hold 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 by four percentage points to 21 per cent, while those with holdings valued between £5,001 and £10,000 increased by three points to 11 per cent.
At the other end of the scale, smaller holdings have become less common. The share of investors with crypto valued at £100 or less fell to 27 per cent, from 32 per cent last year, suggesting that rising prices for major cryptocurrencies may have pushed 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 released 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 standards for exchanges, bringing oversight of the sector closer to that applied to traditional financial services. While much of the UK crypto market remains unregulated, the FCA said its approach would mirror its supervision of conventional finance.
However, the regulator warned that regulation would not eliminate the inherent risks of investing in volatile digital assets.
“Creating a rule book for crypto cannot, and should not, remove all risk,” the FCA said. “Instead, it should ensure that anyone investing in crypto does so with their eyes open.”
The proposals follow legislation put forward by the government this week to bring cryptoassets formally within the FCA’s remit, with the aim of a full UK regulatory regime being 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 establish clear frameworks for digital assets. Industry figures argue that delays could undermine Britain’s ambition to become a global hub for crypto and blockchain innovation.
The FCA’s data suggests that while enthusiasm among retail investors may be waning, significant sums remain invested in the sector — reinforcing the regulator’s view that clearer rules are needed as digital assets become more established within the financial system.
