Fewer people in the UK are investing in cryptocurrencies this year compared with last year, but those who remain in the market are holding larger amounts on average, according to new research published by the Financial Conduct Authority.
The UK financial watchdog said the number of adults owning cryptoassets fell sharply over the past year, even as overall awareness of digital currencies remained high and regulatory scrutiny of the sector increased.
UK crypto ownership declines
The FCA’s Cryptoassets Consumer Research 2025 report found that the proportion of UK adults holding cryptoassets dropped from 12% in 2024 to 8% in 2025.
In numerical terms, this means the number of people owning crypto in the UK has fallen from around 7 million last year to approximately 4.5 million this year.
Despite the decline in ownership, awareness of cryptocurrencies among the UK population remained unchanged at 91%, indicating that public familiarity with digital assets remains widespread even as participation falls.
Regulatory pressure reshapes market
The findings were published as the FCA launched a consultation on new crypto regulations as part of a broader framework to bring digital assets firmly under UK financial oversight.
The regulator has been steadily tightening controls on crypto firms, including tougher rules on financial promotions, anti-money laundering compliance and consumer protection, following high-profile market collapses and fraud cases in recent years.
The FCA said the latest data reflects a more cautious consumer environment as regulation expands and market volatility persists.
Ownership still higher than pre-boom levels
Despite the year-on-year decline, the FCA noted that crypto ownership in the UK remains well above levels seen earlier in the decade.
The proportion of adults holding cryptoassets in 2025 is still double the level reported in 2021, highlighting how digital assets have retained a foothold in the UK’s investment landscape despite recent pullbacks.
Investors hold larger balances
While fewer people now own crypto, those who remain invested appear to be committing more capital.
The report found that 21% of UK crypto holders said they own assets valued between £1,001 and £5,000, indicating a shift towards higher average holdings.
The mean value of crypto held per investor rose to just under $2,500, up from around $2,300 last year, suggesting that more casual or small-scale investors may have exited the market.
UK crypto market remains sizeable
Despite falling participation, the total value of cryptoassets owned by people in the UK remains substantial.
According to figures cited in an October report by the Financial Times, UK crypto holdings are estimated to be worth around $17.3 billion, underlining the sector’s continued economic significance.
Bitcoin and ether dominate portfolios
Bitcoin and ether remain the most widely held cryptocurrencies among UK investors.
The FCA said around 70% of crypto holders own bitcoin, while roughly 35% hold ether, reflecting a continued concentration of investment in the two largest digital assets by market value.
The regulator noted that despite lower overall participation, investors continue to favour established cryptocurrencies over smaller or newer tokens.
Uncertain outlook for UK crypto adoption
The FCA’s findings come as policymakers and regulators weigh how to balance innovation with consumer protection.
With new rules on the horizon and stricter oversight expected in 2026, analysts say UK crypto adoption may stabilise among more experienced investors while remaining less attractive to new entrants.
The FCA said its consultation aims to create a clearer regulatory environment that protects consumers while allowing responsible innovation in the digital asset sector.
