This year has seen a phenomenal increase in cryptocurrency ownership in the UK, more than doubling. This is despite authorities’ warnings about the volatile nature of these digital assets.
According to the Financial Conduct Authority (FCA), the UK’s leading financial regulator, roughly one in every 10 people polled currently hold cryptocurrencies. This rise in interest comes as the FCA prepares to impose stricter rules on the crypto industry in order to reduce mis-spelling.
The FCA’s crackdown will include harsher limits on cryptocurrency advertising, which will take effect in October. Companies will be compelled to present clients with risk warnings and a 24-hour cooling-off period. Incentives for client recommendations would also be prohibited. The new rules will apply to all cryptocurrency marketing in the UK.
The FCA’s decision to regulate the cryptocurrency business is consistent with the UK government’s proposal for a regulatory framework. However, there has been a significant dispute among MPs over classifying cryptocurrency as a kind of gambling. This has sparked a lot of discussion in the community.
🚀🔒 Crypto ownership in the UK doubles in 2022, defying market turbulence. 📈 #UKFinance
— Walletor (@walletorapp) June 8, 2023
According to the FCA’s research, exposure to crypto advertising increased the curiosity of around a fifth of the respondents who had not previously been active in them. This demonstrated that marketing initiatives had a substantial impact on the adoption of digital assets.
Despite market volatility, with the collapse of FTX and the new Binance SEC case, crypto remains popular. While the FCA currently regulates cryptocurrency firms only for money laundering compliance, the study revealed that many people want to invest. This demonstrates the ability of cryptocurrency to attract new users.
The recent lawsuits brought by the Securities and Exchange Commission (SEC) against Binance and Coinbase have heightened the regulatory landscape as the crypto sector faces increasing scrutiny abroad. These enforcement actions emphasize the need for greater control and responsibility in the cryptocurrency business.
Many businesses will need to prepare for this new change. This increase in ownership and growing interest in cryptocurrency shows a shifting DeFi landscape. Despite the hazards, this new arena encourages individuals to pursue new investment opportunities.
Finally, the rise in crypto ownership in the United Kingdom illustrates the growing appeal of digital assets. As regulators prepare to impose harsher regulations, the crypto business must adapt. This is required to protect investors and promote long-term growth.