FCA reveals crypto regulation roadmap as ownership continues to surge.

With public ownership and awareness of crypto on the rise, the Financial Conduct Authority (FCA) announces its roadmap to making crypto a fully regulated asset class by 2026.

On 24 November 2024 the FCA revealed its plans to regulate cryptoassets (crypto), presenting a roadmap with a series of consultations. The roadmap aims to ensure transparency in the policy making process and encourage engagement. A discussion paper is expected by year-end.  

This initiative follows an increase in crypto ownership among UK consumers. 12% of adults now own crypto, up 2% from previous findings, and 93% of adults are aware of crypto, also up 2%. The value of the average crypto holding has also increased by nearly £250, from £1,595 to £1,842. 

Crypto is not currently regulated, although 1/3 of people believe that they could raise a complaint with the FCA if something went wrong. The FCA are therefore seeking to introduce clear regulation which protects consumers and supports the competitive crypto sector at the same time.

Crypto is a volatile asset, and this has prevented some wealth management firms from integrating it into their client portfolios. Whilst many remain cautious, the introduction of regulation could encourage this to change.

The regulator's announcement follows the conviction of Raymond Bedi and Patrick Mayanga, who carried out a £1.5 million investment fraud involving fake crypto investments. This, combined with the increase in consumer ownership of crypto, highlights the importance of regulation in this sphere. Perhaps even more so following the introduction of the Consumer Duty. 

To view the FCA's roadmap, please click here.