Free cookie consent management tool by TermsFeed Crypto ownership in the UK more than doubled during 2022 - TAG Consultancy

The signs continue to emerge of burgeoning interest in cryptocurrency, including from the UK, where rates of crypto ownership doubled last year.

This statistic was revealed by the country’s Financial Conduct Authority (FCA), which said that nearly a tenth of people questioned on the subject owned cryptocurrencies in 2022, more than twice the number that was found to be the case the previous year.

The reveal of the ever-heightening popularity of crypto in the UK came as the financial regulator confirmed that new rules governing how the digital assets can be marketed in the country will take effect from 8th October.

What will the new rules mean for crypto sellers and buyers in the UK?

With the FCA keen to crack down on mis-selling in the crypto sector, the toughened marketing rules that will be put in place will include investors being required to wait a full day before they will be able to complete their transaction, as well as a ban on “refer a friend” adverts.

Crypto advertising that is allowed, meanwhile, must be “clear, fair, and not misleading”.

The new rules will apply to crypto assets that are transferrable and fungible, encompassing digital currencies such as the ever-popular Bitcoin.

Head of consumers and competition at the FCA, Sheldon Mills, said of the changes: “It is up to people to decide whether they buy crypto… our rules give people the time and the right risk warnings to make an informed choice.”

However, the Financial Times newspaper quoted lawyer Harry Eddis, of Linklaters, as saying that the rule changes would make it harder for people to purchase cryptocurrency, thereby exerting a “significant impact” on the UK market.

What has the legal picture been for crypto in the UK so far?

As things stand at the moment, the FCA only regulates crypto companies in the UK in relation to money-laundering compliance.

However, the regulator’s own polling discovered that 28% of those who do not use crypto would be “more likely” to invest in it, if the market and activity were regulated to a similar standard to traditional financial services.

Other findings of the research included that nearly four-fifths of those purchasing crypto drew upon disposable income to cover the cost of it, while 6% borrowed money, and the remainder used savings or proceeds from sales of crypto.

It was also revealed that the mean value of their investments was just shy of £1,600, with four in 10 holding less than £100.

With much debate continuing – including among UK lawmakers – as to how crypto ought to be treated in the UK from a legal and regulatory standpoint, it is nonetheless fascinating to see how much traction the sector has gained among the wider public in the country.

Get in touch with TAG Consultancy to ask about our acclaimed AML crypto services

All of the above brings us neatly to the subject of your own engagement with crypto. If you are an individual or organisation that would appreciate guidance and assistance in relation to this still fast-growing sector, you might have good reason to reach out to TAG Consultancy about our highly rated blockchain advisory and AML crypto services.

In fact, if you are a new client when you enquire to us, we would be pleased to give you the benefit of a free consultation, so that we can explore together what form your relationship with our company could take. With our help, you can reach new heights of success in your involvement in crypto.


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