FCA Data Shows Biggest Drop in UK Crypto Ownership in Four Years

Fresh data from the Financial Conduct Authority (FCA) shows that the United Kingdom has recorded its biggest decline in crypto ownership since 2021.

According to the regulator’s Crypto Asset Consumer Research 2025 report, which tracks how U.K. residents engaged with cryptocurrencies over the past year, the share of adults holding digital assets, including Bitcoin and Ethereum, fell to around 8% in 2025.

Biggest Decline in UK Crypto Ownership Since 2021

This marks the largest decline reported by the FCA since 2021. In its 2024 report, the FCA disclosed that roughly 7 million adults, or about 12% of the U.K.’s adult population, held crypto. However, crypto ownership among U.K. adults previously stood at 10% in 2022 and 4.1% in 2021.

The downturn highlights a growing disconnect between rising crypto prices and public participation. Following the market’s sharp collapse in late 2022 after the FTX debacle, many retail investors remained on the sidelines.

Although industry participants spent the following years promoting adoption and attracting new users, those efforts failed to sustain momentum.

Heightened market volatility driven by macroeconomic pressures and geopolitical tensions ultimately took a toll this year, triggering billions of dollars in forced liquidations and a prolonged selloff that eroded retail investor confidence, with ownership plunging to 8%.

More UK Adults Are Committed to Crypto

Meanwhile, despite the decline in overall adoption, the U.K. adults who continue to hold crypto appear more committed than ever.

According to the FCA report, balances among existing investors have increased sharply, with 21% of U.K. crypto holders reporting portfolios valued between £1,001 ($1,342) and £5,000 ($6,707). Similarly, the proportion of investors holding less than £100 ($134) in crypto assets has declined significantly.

Crypto Moves Into UK Politics

As retail participation wanes, political interest in digital assets has been on the rise. Some political figures are now weaving crypto into their platforms to tap the sector’s fundraising power and appeal to younger voters.

This trend was evident during the 2024 U.S. election, when Donald Trump attracted substantial financial backing from the crypto industry.

In a similar move, several crypto groups are now throwing their weight behind Nigel Farage’s Reform U.K., betting that the party could champion more favorable crypto regulations in the U.K. — much like Trump and the Republican Party have done in the United States.

Meanwhile, as the U.S. reviews the CLARITY Act following the enactment of the GENIUS Act, and the European Union has already implemented MiCA, the United Kingdom faces growing pressure to catch up with comprehensive crypto regulation.

In the meantime, the FCA is consulting on multiple crypto-related rules, ranging from exchange services to staking and market abuse standards. The consultation period is set to close in February 2026, with crypto firm licensing expected to open later that year and full regulatory enforcement anticipated in 2027.