With the UK Financial Conduct Authority (FCA) recently publishing its roadmap for crypto regulation, cryptocurrency firms operating in the United Kingdom will soon need to secure a licence under the new FCA framework. Meanwhile, as the Trump administration prepares to assume office with a stated goal of making the US the centrepiece of the modern digital economy, questions arise about how the UK’s evolving regulatory landscape will align with or diverge from this pro-crypto momentum.
UK's Crypto Framework vs. US Deregulatory Ambitions
Shifting from the current anti-money laundering (AML)-focused approach to a comprehensive framework, the FCA’s new rules regarding capital requirements, insider trading, and market execution are set to take effect by 2026. Putting the finishing touches to its regulatory agenda, the UK’s financial oversight has unveiled discussion papers, such as DP24/4, inviting feedback by 14 March 2025, which focus on key areas like stablecoin issuance, custody, market abuse regimes, and cryptoasset admissions and disclosures.
In my years of working in crypto PR, I’ve observed how such initiatives can shape the relationship between regulators and the industry. From my perspective, without clear and consistent communication even the most well-constructed frameworks can fail to inspire confidence among those they aim to support. At Outset PR, we’ve seen how bridging this gap between regulatory intent and market perception can make or break the adoption of new policies.
This unique approach, led by the FCA, presents a markedly different strategy compared to the crypto policies anticipated under the Trump administration in the United States. While the UK is constructing its framework centred on engagement with industry participants, consumer protection, and market stability, the US under Trump appears to be positioning itself as a global crypto leader with a more business-oriented and growth-focused approach.
Trump's goal of making the US the 'crypto capital of the world' and his proposed policies, such as creating a strategic Bitcoin reserve and appointing crypto advocates to key regulatory positions, largely signal deregulation and an intention to reduce barriers for businesses—potentially at the expense of consumer safeguards.
Growing Confidence and Shifting Investment Patterns Among UK Cryptoasset Holders
The UK's crypto adoption landscape, as detailed in the FCA's Cryptoassets Consumer Research 2024, reveals an increase in ownership of digital assets, with approximately 10% of UK adults—equivalent to around 7 million people—possessing cryptoassets as of August 2024. For comparison's sake, the UK crypto ownership rate was 5 million (10%) in 2022, up from 2.2 million (4.4%) in 2021, indicating how it is going from strength to strength.
Source: FCA Cryptoassets Consumer Research 2024
The group of young adults leads the way, with 24% of those aged 18–34 owning cryptoassets. This is significantly higher than the 12% ownership rate among those aged 35–54 and just 4% for those aged 55 and older. Men are also more likely to own crypto than women, with 19% of men owning cryptoassets compared to only 6% of women. Socioeconomic groupings reveal further disparities, where 15% of individuals in higher-income groups own crypto compared to 9% in lower-income groups.
Among these cryptoasset users, there has been a notable increase in the proportion of those holding higher-value assets. For instance, 17% of users now own cryptoassets valued between £1,001 and £5,000, up from 14% in the previous wave. What’s more remarkable is that the percentage of users holding assets worth between £5,001 and £10,000 has risen from 6% to 19%. On the other hand, there has been a decline in the percentage of users with holdings valued at £100 or less, dropping from 39% in the last wave to 32%. As a result, UK investors appear to be pinning their hopes on mid- to high-value investments.
The methods of purchasing cryptoassets have likewise experienced a change. While the majority (72%) of users still rely on their disposable income to purchase crypto, this figure has declined by 7 percentage points from the previous wave. Meanwhile, alternative payment methods, such as credit cards or existing credit facilities, have gained popularity, increasing from 6% in the last wave to 14% currently.
Taking a long view, over a quarter (27%) of cryptoasset users reported that they would be more likely to invest in crypto if there were clearer regulations in place. Additionally, 25% indicated they would be more inclined to invest if regulations included financial protections against losses.
Emerging trends in cryptoasset activities also reflect a diversifying landscape. For example, 27% of users have participated in staking in the past 12 months, while 9% have engaged in crypto lending or borrowing during the same period. However, awareness remains a barrier, with around half of respondents unfamiliar with these activities. That said, overall understanding of cryptoassets remains consistently high—90% of cryptoasset users selected the option that accurately describes cryptoassets.
Conclusion
While the US under Trump promises a period of light-touch regulation and aggressive growth, the UK remains committed to a measured approach that prioritizes accountability. With approximately 12% of UK adults now owning cryptoassets—a steady rise from previous years—it’s evident that confidence in the market is growing. A robust regulatory framework appears to be the ticket to attracting more UK cryptoasset investors, with 27% of existing users stating they would be more likely to invest if their financial security was better guaranteed. The proof will be in the pudding as we observe how these contrasting approaches to balancing investor confidence and crypto market growth play out.
xrp
usdt