UK Crypto Ownership Declines in 2025, Alarming Regulators
According to recent research commissioned by the Financial Conduct Authority (FCA), the percentage of UK adults who own cryptocurrencies has experienced a notable decline in 2025. The ownership rate has dropped from 12% in 2024 to just 8% this year, marking the first significant decrease in ownership since 2021.
The FCA's study was conducted between August 5 and September 2, 2025, utilizing a nationally representative sample comprising 2,353 interviews collected through a YouGov online panel. An additional sample was boosted with individuals who currently own or have previously owned crypto assets. Despite the drop in ownership, awareness of cryptocurrencies remains impressively high at 91%. This suggests that while fewer individuals are actively investing in cryptocurrencies, public consciousness surrounding the topic has not waned.
This decrease in reported ownership indicates a shift in the landscape of cryptocurrency investors within the UK. Although ownership has diminished, it remains approximately double the levels recorded in 2021, implying that even as smaller retail investors may be exiting the market, a core of more substantial, larger holders continues to remain engaged.
Shifts in Average Holdings
The research highlighted that even with a decrease in the number of owners, the remaining cryptocurrency holders have increased their investment sizes. Specifically, the proportion of holders with cryptocurrencies valued between £1,001 and £5,000 has risen to over 20%. Similarly, those holding amounts between £5,001 and £10,000 grew to around 10%.
Conversely, smaller holdings—specifically those below £100—have seen a decline. This trend indicates that while the total number of participants in the crypto market may be decreasing, those who continue to invest tend to do so with larger sums.
Additionally, it was reported that many cryptocurrency users have experienced net gains in 2025, with a majority stating that their portfolio values increased over the year. Among those who still hold cryptocurrencies, Bitcoin remains the dominant asset with 57% of holders, followed by Ether at 43%. Other tokens are less widely held, although Solana indicates presence among approximately 21% of holders. This fact underscores a trend toward concentration in a limited number of major cryptocurrencies, even as overall participation in the market declines.
Regulatory Developments
The publication of this research aligns with the FCA's overarching strategy to enhance and tighten regulations surrounding cryptocurrencies in the UK. As a response to the evolving market landscape, the FCA has initiated consultations aimed at establishing comprehensive regulations for trading platforms, market safeguards, and rules applicable to staking, lending, and custody of cryptocurrencies.
Reports indicate that the consultation process is intertwined with a broader government plan aiming for formal regulations of crypto assets to be operational by October 2027. As part of the effort towards clearer regulations, the FCA is focusing on enhancing market integrity and consumer protection, underscoring the government's intensified scrutiny of the booming crypto sector.
Implications for Markets and Consumers
The declining proportion of retail ownership in the cryptocurrency market holds implications for market dynamics. Fewer retail participants may lead to a decrease in retail-driven volatility, which could stabilize short-term price actions. However, this trend could also diminish the general public's familiarity and engagement with cryptocurrencies, potentially slowing the overall adoption of these digital assets.
Despite the reduced number of retail owners, the trend toward larger average portfolio sizes means that significant consumer losses could occur should market fluctuations arise. The FCA's work towards establishing clearer regulations is vital, especially as public interest and participation in cryptocurrencies continue to evolve.
In conclusion, even as a smaller segment of the UK populace reports cryptocurrency ownership in 2025, the remaining investors appear to be leaning towards larger, more robust holdings. The regulatory landscape is also shifting, with greater oversight anticipated as part of the UK's approach toward the crypto market.
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Disclosure: This article is for informational purposes only and does not constitute investment advice.
