FCA aims to increase regulations on crypto as popularity grows
The Financial Conduct Authority is planning to consult on new regulations for cryptocurrency, following findings that show an increase in the number of UK adults owning crypto assets.
The latest research from the regulator indicates that 12% of investors in the UK now own cryptocurrency, a rise from 10% in previous findings. Additionally, the average value of crypto held by individuals has increased from £1,595 to £1,842.
The FCA has identified a lack of understanding around the regulation of crypto assets, with a third of individuals wrongly believing they could file a complaint with the FCA in case of issues. Matthew Long, director of payments and digital assets at the FCA, emphasized the importance of clear regulation to support a safe and sustainable crypto sector in the UK.
The FCA will conduct a series of “focussed consultations” to share its approach to regulating crypto assets. Dan Coatsworth from AJ Bell expressed that regulation in this space is long overdue, highlighting the need for a proper regulatory framework to protect investors.
Paul Waterman, partner at GSB Wealth, indicated that wealth managers are cautious about incorporating crypto assets into investment strategies due to the lack of evidence justifying their inclusion at this stage.
Chris Recker, a legal director at Kingsley Napley specializing in digital assets, stressed the importance of educating consumers about crypto assets to enhance their understanding and protect their interests in the industry.
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