UK Crypto Ownership Shrinks to 2021 Lows Amidst Growing Holdings and Regulatory Crackdown
New research commissioned by the Financial Conduct Authority (FCA) reveals a significant contraction in UK cryptocurrency ownership, marking the lowest percentage since 2021. Despite this decline in the number of individuals holding digital assets, remaining investors are consolidating larger portfolios, signaling a maturing market under increasing regulatory scrutiny.
Fewer Britons Holding Crypto, Yet Awareness Stays High
The FCA's latest study indicates that the proportion of UK adults holding cryptocurrencies has dropped to 8% in 2025, a notable decrease from 12% just a year prior. This marks the first fall in overall ownership in the last four years, suggesting that many smaller-scale investors may have exited the market. Interestingly, general public awareness of cryptocurrencies remains robust at 91%, highlighting a sustained understanding and recognition of digital assets, even as active participation by new retail investors wanes. The data suggests a core group of larger holders persists, contributing to a stable, albeit smaller, market base.
Shifting Investment Patterns and Tightening Regulations
While the overall number of crypto owners has fallen, the average value of individual holdings has shifted upwards. The study highlights a rise in investors holding crypto worth between £1,001 and £10,000. Bitcoin remains the most common asset, held by 57% of investors, followed by Ether at 43%, with Solana also maintaining a notable presence among 21% of holders. This trend points to a market consolidating around top assets and larger investments. In response to these evolving dynamics and as part of a broader initiative to bring the sector under clearer rules, the FCA is actively working to establish formal regulatory frameworks, with consultations launched on proposals covering trading platforms, market safeguards, staking, lending, and custody. Formal regulation of cryptoassets is anticipated by October 2027. This market realignment presents a complex picture for the future of crypto in the UK. A smaller base of retail investors could potentially lead to reduced retail-driven market volatility, but it also risks diminishing everyday familiarity with cryptocurrencies among the broader public. As the market streamlines towards more concentrated holdings, it simultaneously faces an intensifying regulatory spotlight designed to enhance market integrity and consumer protection.
