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    Rising cryptocurrency ownership in the UK signals urgent need for clearer regulations

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    Cryptocurrency ownership in the UK has risen to 12%, up from 10% in June 2023. The growth indicates a need for clearer crypto regulations, according to George McDonaugh, co-founder of KR1. The Financial Conduct Authority (FCA) plans to create cryptocurrency regulations by 2026, with first discussions on stablecoin issuance and custody set for the end of 2024, followed by discussions on trading platforms and decentralized finance in 2025.

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    More and more people in the UK are getting into cryptocurrency, something the country’s big financial authorities are starting to pay attention to. Over 12% of adults in the UK now own cryptocurrency, with each holding an average of around 1,842 British pounds (or $2,318) in crypto. This is a big jump from June 2023 when only 10% of people in the UK had digital currencies, says the Financial Conduct Authority (FCA).

    George McDonaugh, a big shot in the cryptocurrency world and one of the founders of KR1, thinks the increase shows people really want to get into crypto. He also thinks it’s time for UK government to get with the times when it comes to rules around crypto. “People are starting to see crypto as a part of their investment portfolio, even for the long term,” he said. “This research shows that crypto is already popular in the UK, so it’s time for the regulators and lawmakers to get up to speed.”

    Because more people are interested in investing, the FCA (UK’s top financial regulator) is planning on creating cryptocurrency regulations by 2026. As the plan takes shape, the UK could potentially take the lead in terms of innovation in Web3 (the new generation of internet).

    McDonaugh thinks it’s crucial for the government to outline its rules for the crypto industry. He believes that digital currencies could help the UK economy to grow, boost skills and create jobs. The whole process will involve a series of discussions so that everything is open and efficient. The first topics on the table are to discuss stablecoin issuance and custody, planned for the end of 2024.

    As for 2025, they plan on discussing trading platforms and decentralised finance (DeFi) activities (like staking and lending). The FCA has ambitions to release the final set of rules in 2026, the same year they intend to have everything up and running. The director of payments and digital assets at the FCA, Matthew Long, emphasises the importance of having clear regulation, “We want to develop a sector that encourages innovation with trust in the market and consumers.”

    Expect more discussions around cryptocurrency regulations as the world watches the first comprehensive regulatory framework (known as MiCA) take shape in the European Union, fully expected to be implemented by the end of 2024.

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