Recent research from the UK’s financial regulator shows a notable decline in the share of adults holding cryptocurrencies, even as authorities move ahead with comprehensive regulatory consultations and legislative plans.
The proportion of adults in the UK holding cryptocurrency fell to approximately 8% in 2025, down from about 12% in 2024, reversing the upward trend seen in recent years and marking the first annual decline since 2021.
This drop comes against a backdrop of active political and regulatory engagement in the crypto sector. The Financial Conduct Authority (FCA) has launched an extensive public consultation on proposed rules for the crypto industry, covering areas such as digital asset listings, market abuse protections, and transparency requirements for trading platforms, brokers, and services like staking and lending.
The UK government is also moving forward with plans to bring crypto into a formal regulatory regime slated to take effect in October 2027, aiming to enhance consumer protection, strengthen market confidence and attract global investment into the digital asset space.
Decline in crypto ownership amid advancing regulation
Despite these developments, the data indicate waning enthusiasm for direct crypto investment among the broader population. Observers suggest that the decline in ownership may be linked to price volatility, perceived investment risk and increased caution among retail investors. Interestingly, while overall ownership has dropped, the segment of holders with larger portfolios has grown, indicating that committed investors are deepening their exposure even as casual or smaller holders exit the market.
The contrast between growing regulatory momentum and decreasing ownership underscores a complex dynamic: clearer rules can foster long-term stability, but prolonged regulatory processes and uncertainty about future compliance requirements may deter potential new participants in the near term.
Overall, the decline in UK crypto ownership highlights a transitional phase for the market, where political and regulatory efforts intersect with evolving investor sentiment and market conditions in the digital asset landscape.
