You can now pay for your coffee, a daily commute, or a night out of crypto in the UK. And that’s correct, as you will see how fast the crypto industry is evolving in the country where they have even launched crypto cards. 445Following that, this excellent, attentive country with such auspicious foundations is becoming one of the influential countries in the worldwide crypto landscape, offering you many more opportunities that may change how you save, invest, and spend.
With the increasing popularity of digital currencies, we dream of a future where Bitcoin and other digital currencies will be as common as the pound. However, the UK government could help you realize your dream sooner by reaffirming its support for crypto in the UK and committing to safeguard your finances. So, with all of these going on, what does the future of crypto look like? Stick around to find out.
Trending crypto news in the UK
The UK cryptocurrency market is growing and is anticipated to generate a revenue of US$1660 million by 2024. A growing number of people are adopting cryptocurrency and its decentralized technology, notably younger tech-savvy individuals keen to experiment with the various crypto and digital finance applications. Finder found at least 13% of Britons own some cryptocurrency today, up from 3.9% in 2019. Of course, we all bought digital crypto assets for our own motives, but those under 30 commonly trust in the potency of blockchain technology.
Moreover, Bitcoin remains the most popular crypto investment in the UK, forming around 67% of all crypto investments made by UK investors. However, that is no way to say that individuals are restricted to Bitcoin solely. There are more than 2700 crypto startups in the UK alone, and further innovation as people explore the decentralized economy of DeFi, NFTs, and new digital tokens. Statista says the user penetration rate is 35.07% this year and 35.12% next year.
Investment opportunities
This is doing well in the growing segment where people are looking for new investment options. According to a report published by Chainalysis in 2023, the UK was one of the leading European markets for DeFi. With access to DeFi financial services, you can borrow, lend or trade without relying on traditional intermediaries such as banks, which saves you time and money.
The future of crypto in the UK is also being molded by institutional investments, with British banks and investment firms embracing blockchain technology and digital assets. For instance, Barclays has piloted a crypto custody program that enables customers to hold their crypto assets securely. HSBC also demonstrated its plans to leverage blockchain technology to optimize its financial services. The blockchain and crypto industry has also grown; a 2023 report revealed that the industry supports over 80,000 jobs.
What of government regulation?
In reality, you may agree that the proper regulatory framework is essential for the crypto industry to grow, and the UK is one of the countries that provides such. In April 2022, the UK government revealed it intends to turn the country into a global center for crypto asset technology and investment. While implementing these plans, the Treasury launched stablecoins as a payment method – a widely accepted measure that aims to keep digital currencies pegged to a fiat currency, such as the dollar, to maintain their stable value. Enforcement of the Financial Service and Markets Act should also come into full play to give regulatory bodies power and oversight of crypto transactions. Hence, they are much safer for you.
All crypto asset firms had to register with the UK Financial Conduct Authority (FCA) four years back to better regulate the industry. In September 2024, parliament introduced the Property (Digital Assets, etc.) Bill, classifying digital holdings as personal property under the law. This would grant legal protections to digital assets such as cryptocurrencies, non-fungible tokens, and carbon credits akin to other forms of personal property.
Raising awareness
People are losing money in crypto (a lot of it); sometimes, they are doing it from fake investments that guarantee crazy returns — although the majority of people aren’t aware of basic crypto protocols. A 2022 report highlighted that nearly 85% of crypto investors in the UK do not know much about how cryptocurrencies operate. That brought the overall losses from crypto scams that year to £226 million. With this in mind, the government and educational institutions have made it a mission to educate the public about digital assets and investments.
Universities like the London School of Economics and University College London offer blockchain and crypto courses. Likewise, secondary schools are not lagging behind and have started including topics on crypto within the ambit of business studies. Moreover, the government has also initiated public campaigns that extend beyond school to cover all adults so that all have the awareness to benefit from the developing technology.
Parting shot
What is next for crypto in the UK looks quite bright, especially with the measures put in place for it to thrive. The government is fighting to ensure that things like security don’t take away the many benefits that crypto brings to you.
Proper regulation and education have allowed many to adopt digital currencies and harness their fullest potential. The nation is expected to make more changes to adapt to the ever-changing crypto industry and establish itself as a world leader in crypto.
