The proportion of adults in the UK holding cryptocurrencies has fallen significantly, according to new research from the Financial Conduct Authority (FCA). The findings come as the regulator sets out long-awaited proposals to bring digital assets under formal supervision.
The FCA-commissioned survey found that just 8% of UK adults now own cryptocurrencies such as bitcoin or ethereum, down from 12% in 2024. Analysts say the decline reflects the waning momentum of retail crypto ownership amid market volatility and uncertainty over regulation.
While the overall number of crypto investors has dropped, those who remain in the market tend to hold larger sums. The survey showed that 21% of crypto holders have investments valued between £1,001 and £5,000, up four percentage points from last year. Holdings between £5,001 and £10,000 also increased to 11% of investors. By contrast, smaller holdings have become less common, with the share of investors owning £100 or less falling to 27% from 32% in 2024, suggesting higher prices for major cryptocurrencies may have pushed casual investors out.
The survey, conducted between August and September 2025, included 2,353 UK adults and was released alongside a package of proposals from the FCA to create a comprehensive regulatory framework for digital assets.
Under the FCA’s plans, crypto firms would face rules on market abuse, lending practices, custody, and standards for exchanges. The regulator said the framework would bring digital assets closer in line with traditional financial services oversight, while cautioning that regulation would not remove the inherent risks of investing in volatile crypto markets.
“Creating a rule book for crypto cannot, and should not, remove all risk,” the FCA said. “Instead, it should ensure that anyone investing in crypto does so with their eyes open.”
The proposals follow new legislation introduced by the government this week to formally bring cryptoassets under the FCA’s remit. Officials aim to have a full UK regulatory regime in place by 2027.
Industry leaders have warned that delays in establishing rules could see the UK fall behind other major markets, such as the United States and the European Union, both of which have moved more quickly to regulate digital assets. Some executives argue that slower progress could undermine Britain’s ambition to become a global hub for crypto and blockchain innovation.
Despite falling retail participation, the FCA’s data shows significant sums remain invested in cryptocurrencies, highlighting the continued importance of regulatory oversight. The regulator said the move would help ensure that as digital assets become more embedded in the financial system, investors are protected and the sector operates transparently.
The research and regulatory proposals together signal a turning point for the UK crypto market, as authorities seek to balance innovation with investor protection in a rapidly evolving sector.
