UK Crypto Ownership Takes Biggest Hit Since 2021, Regulator Says

Overview

Recent research commissioned by the Financial Conduct Authority (FCA) reveals a significant decline in cryptocurrency ownership among UK adults. The study indicates that the percentage of adults holding cryptocurrencies has decreased from 12% in 2024 to 8% in 2025. This marks the first decline in ownership in four years, even as awareness of cryptocurrencies remains high.

Decline in UK Crypto Ownership

The FCA’s findings are based on fieldwork conducted from 5th August to 2nd September 2025, which utilized a YouGov online panel to conduct 2,353 interviews, supplemented by an additional sample of crypto owners. The results show that while the overall ownership of cryptocurrencies has fallen, awareness remains robust at 91%.

This decline is noteworthy as it represents the first decrease in ownership since 2021, although current ownership levels are still approximately double those recorded two years prior. This suggests that while some individuals may have sold off smaller holdings, a core group of larger holders continues to participate in the market.

Changes in Average Holdings

Interestingly, the research indicates a shift in the distribution of cryptocurrency holdings. The proportion of individuals holding between £1,001 and £5,000 in crypto has increased to over 20%. Additionally, the percentage of those with holdings between £5,001 and £10,000 has risen to around 10%. Conversely, the number of individuals reporting small holdings of less than £100 has declined.

Many current holders reported net gains in 2025, with a majority stating that their portfolios increased in value over the year. Among those who still own cryptocurrencies, Bitcoin remains the most commonly held asset at 57%, followed by Ether at 43%. Other tokens, such as Solana, are less widely held but still show some presence, as around 21% of holders reported owning it.

Regulatory Developments

The FCA released this research as part of a broader initiative aimed at establishing clearer regulations for the cryptocurrency sector. The regulator has initiated consultations regarding trading platforms, market safeguards, and rules pertaining to staking, lending, and custody. Reports indicate that this consultation process is part of a larger government plan to implement formal regulations for crypto assets by October 2027.

From author

The findings from the FCA highlight a critical moment for the UK cryptocurrency market. The decline in ownership suggests a shift in public sentiment towards cryptocurrencies, which could have implications for future regulatory approaches and market dynamics. As the FCA pushes for increased regulation, it remains to be seen how these changes will affect both consumers and market participants.

Impact on the crypto market

• The decrease in retail ownership may lead to reduced volatility driven by smaller investors.
• High awareness levels, despite declining ownership, could indicate a potential for future market engagement.
• The increase in average portfolio sizes suggests greater risk exposure for remaining investors during market fluctuations.
• Regulatory scrutiny is likely to intensify as the FCA moves towards clearer rules, which could affect market operations.
• The concentration of holdings in major cryptocurrencies could impact the diversity of the crypto market landscape.