UK Crypto Ownership Plummets to 8% in 2025 After 12% High in
The UK's crypto experiment hits a wall. After a promising surge to 12% adoption last year, ownership has crashed back down to earth.
The Great British Sell-Off
What happened? The data tells a clear story of retreat. The market's volatility finally spooked the casual investor. One minute you're up, the next you're watching your portfolio do an impression of a sinking ship—and the British public decided they'd had enough of the rollercoaster.
Regulation Bites Back
Meanwhile, the regulatory landscape tightened. The FSA's increasingly stern posture made jumping in feel less like a frontier opportunity and more like a compliance headache. It's the classic finance sector play: first ignore the innovation, then regulate the life out of it.
A Market in Reset
This isn't necessarily an obituary for crypto in Britain. It's a market correction in the truest sense—shaking out the tourists to leave room for the builders. The core technology hasn't changed; only the crowd around it has. The remaining 8%? They're likely the ones who understand this isn't a get-rich-quick scheme but a fundamental shift.
So, while the headlines scream decline, the real story might be one of maturation. The weak hands are gone. What's left is a leaner, more focused ecosystem. Sometimes, you need a brutal winter to clear out the deadwood. Just ask any traditional banker about their last quarterly report.
Lawmakers push crypto into politics
Some lawmakers have moved to make crypto part of their agenda, tempted by new funding streams and younger voters. Industry groups have worked to connect with Nigel Farage’s Reform UK, betting that the party may back friendlier rules.
Other regions, including the EU and the US, already rolled out their own digital-asset laws, leaving Britain trailing.
The FCA published comments from Matthew Long, who said, “This year’s findings show that while the proportion of UK adults holding cryptoassets has declined compared to last year, the typical value held by investors has increased. More people are moving away from small holdings and are instead making larger investments.”
The FCA is now consulting on a wide package of rules that WOULD regulate crypto firms. License applications open in 2026, and full rules begin in 2027, according to the Treasury.
One earlier proposal would have blocked retail use of lending and borrowing services, but the FCA dropped that idea after finding that users of these services hold larger balances, do more research, and better understand risk.
Regulators expand rules while donations surge
New proposals also cover staking, decentralized finance, exchange services, and market-abuse rules. The consultation window runs until February next year.
Alongside the regulatory talks, the political side of crypto money is rising fast. The industry has tried to build stronger ties with Farage, who sees value in a sector with DEEP pockets.
Christopher Harborne’s donation to Reform was the largest ever given to a British political party by a living donor. In the US, gifts of that size barely register, but in Britain the number stands out.
This year also brought a $27 million donation from Elon Musk to an American political action committee supporting President Trump.
Elon floated the idea of donating to Reform as well, but that talk stalled after a clash over his backing of UK far-right activist Tommy Robinson.
In the House of Lords, polling expert Robert Hayward argued that:- “Not only is it happening, but the probability is that we will be getting ever-larger sums of money in the FORM of Americanization of contributions to political parties unless they’re curtailed in some form.”
According to Robert, British voters prefer the current system far more and so allowing massive sums could very well create a belief that wealthy donors can “buy an election.”
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