Britain’s crypto boom: unpacking the UK’s leading role in digital asset adoption

It’s clear that digital currencies are growing fast, and the United Kingdom is leading the way. Recent information from the Financial Conduct Authority (FCA) shows that more and more people are using crypto. Around 12% of UK adults now own crypto assets, which is a noticeable 2% jump since 2022. Interestingly, most of this increase is happening in England, which has about 84% of the UK’s population. Almost everyone in the UK knows about crypto – over 90% – and it is mostly owned by younger people who are good with technology.

The 25-34 age group is the biggest group of crypto users in the world, making up about 31% of the market. Surveys in the UK show that most people who have crypto are under 45. While people who started using crypto early on usually had more education and money, this is becoming less true as it becomes more popular. Today, we’re going to look more closely at how cryptocurrency has developed in the UK and what the future might hold.

The UK: a European leader in crypto adoption

When you look at Europe as a whole, the UK really stands out for how it has embraced cryptocurrency. A survey in June found that 23% of people in the UK have bought crypto at some point, which is slightly more than the 22% in the Netherlands. At the moment, 19% of adults in the UK have crypto assets, compared to 17% in the Netherlands.

Even Switzerland, often praised for being friendly towards cryptocurrency, only has about 11.5% of its adult population owning crypto. These numbers suggest that the UK’s adoption rate is either the same as or even higher than other major European markets, and it’s much higher than the EU average.

What’s fuelling the UK’s crypto growth?

The surge in crypto interest across Great Britain and Northern Ireland is a fascinating blend of technological trends and social dynamics. Here’s what’s really pushing the needle:

• Curiosity and learning: Many individuals are simply “interested in learning” about this new financial frontier.
• Seeing others succeed: The classic “seeing others win big” factor, often linked to the fear of missing out (FOMO), plays a significant role.
• Social influence: A considerable portion of new adopters (about a third) admit that friends, family, or online influencers have encouraged them to jump in.
• Pervasive advertising: You can’t escape crypto adverts! Around half of respondents report seeing crypto ads everywhere, from sports sponsorships like Premier League matches to online content.
• Distrust of traditional finance: A notable segment (about one in four) is motivated by a growing distrust of conventional financial institutions or a desire for greater financial anonymity.

In essence, UK crypto interest is a potent mix of tech enthusiasm, social buzz, and a healthy dose of FOMO. This adoption is happening within a population that already embraces fintech wholeheartedly, with mobile banking, e-money apps, and online investing being deeply integrated into everyday life. Shifting to crypto platforms feels like a natural progression for many.

London: the UK’s cryptocurrency innovation epicenter

As a global financial powerhouse, it’s no surprise that London has become the UK’s undeniable crypto capital. Most of the country’s new cryptocurrency companies and trading firms are based in this city. Companies like BCB Group provide important payments and storage services to big companies like Bitstamp, Gemini, and Crypto.com.

Well-known global platforms like Coinbase and Binance run their UK branches from London, and the city also has a busy schedule of blockchain meetups and conferences, including the well-known Digital Asset Conference founded by Nikita Fadeev. Crypto businesses and investment funds are drawn to London because of the FCA and the Bank of England, which are both based there.

The UK’s evolving regulatory framework

After Brexit, the UK has chosen to regulate crypto differently to the EU. Instead, it uses the existing Financial Services and Markets Act (FSMA) to bring crypto into the same rules as other financial services. A big step was taken in April with the Treasury’s first plan for “Cryptoassets Order 2025,” which says that some tokens and stablecoins are now considered regulated investments. This means that platforms involved in crypto activities, custody, and issuance will need FCA authorisation.

Since January 2020, the FCA has been in charge of Anti-Money Laundering (AML) registration, and by mid-2024, only a few dozen firms had been approved. A key point for consumers: since 8 October 2023, unapproved firms marketing to UK retail investors risk facing criminal action. In May and June 2025, the FCA shared some ideas for the future of cryptocurrency. These ideas were called ‘DP25/1, CP25/14/15’. They talked about how platforms, custody, stablecoins and rules for safety should be managed.

To sum it up, the UK’s approach is planned and strong. It puts anti-fraud measures, strong consumer protection and good governance first, while getting ready to allow crypto derivatives and funds under strict controls.

FCA-compliant crypto platforms in the UK

All major crypto exchanges and platforms serving British users are keen to highlight their FCA compliance, offering peace of mind to their customers.

This broad regulatory oversight, covering apps like Revolut, Binance, and Coinbase, ensures that UK users have a range of regulated choices across essential services such as custody, payments, exchanges, and wallets.

The surge in UK institutional crypto investment

More and more institutions in the UK are showing interest in crypto. In July, UK tech firm Asset Reality got the go-ahead from the FCA for crypto custody, an important step towards offering top-notch services. Big names like BlackRock are working with regulators to list a crypto ETF on the London Stock Exchange (LSE), and the FCA itself aims to permit retail crypto exchange-traded notes (cETNs) by October 2025.

Recently, the London Stock Exchange Group (LSEG) launched its new Digital Markets Infrastructure (DMI) for private funds, successfully completing its first live fundraise. Meanwhile, financial giants Goldman Sachs and BNY Mellon have introduced “tokenized” money market funds, using blockchain technology via GS DAP.

It seems like we’re on the verge of a big influx of institutional money into the UK crypto market. With more custody approvals and the FCA setting up a solid regulatory framework by 2026, things are definitely looking promising. The approval of crypto exchange-traded products for professionals, along with increased interest from institutions, really points to strong growth ahead, especially once retail ETFs and ETPs get approved.