The UK just posted its first drop in crypto ownership since 2021, with the share of adults holding crypto crashing by around 8% this year. Record prices earlier in 2025 did not stop the decline, even after Bitcoin surged to $126,251 in early October. Industry groups had spent the better part of 2 years pushing hard to attract new users, but that momentum faded after billions in forced liquidations and a long selloff crushed retail interest. Research from the Financial Conduct Authority shows that roughly 7 million adults, or 12% of the adult population, held crypto in 2024, which was up from 10% in 2022 and 4.4% in 2021. General crypto awareness sits at 91%, matching last year. Among active holders, balances grew, with about 21% of users reporting between £1,001 and £5,000, while those with under £100 shrank. Lawmakers push crypto into politics Some lawmakers have moved to make crypto part of their agenda, tempted by new funding streams and younger voters. Industry groups have worked to connect with Nigel Farage’s Reform UK , betting that the party may back friendlier rules. Other regions, including the EU and the US, already rolled out their own digital-asset laws, leaving Britain trailing. The FCA published comments from Matthew Long, who said, “This year’s findings show that while the proportion of UK adults holding cryptoassets has declined compared to last year, the typical value held by investors has increased. More people are moving away from small holdings and are instead making larger investments.” The FCA is now consulting on a wide package of rules that would regulate crypto firms. License applications open in 2026, and full rules begin in 2027, according to the Treasury. One earlier proposal would have blocked retail use of lending and borrowing services, but the FCA dropped that idea after finding that users of these services hold larger balances, do more research, and better understand risk. Regulators expand rules while donations surge New proposals also cover staking, decentralized finance, exchange services, and market-abuse rules. The consultation window runs until February next year. Alongside the regulatory talks, the political side of crypto money is rising fast. The industry has tried to build stronger ties with Farage, who sees value in a sector with deep pockets . Christopher Harborne’s donation to Reform was the largest ever given to a British political party by a living donor. In the US, gifts of that size barely register, but in Britain the number stands out. This year also brought a $27 million donation from Elon Musk to an American political action committee supporting President Trump. Elon floated the idea of donating to Reform as well, but that talk stalled after a clash over his backing of UK far-right activist Tommy Robinson. In the House of Lords, polling expert Robert Hayward argued that:- “Not only is it happening, but the probability is that we will be getting ever-larger sums of money in the form of Americanization of contributions to political parties unless they’re curtailed in some form.” According to Robert, British voters prefer the current system far more and so allowing massive sums could very well create a belief that wealthy donors can “buy an election.” Join a premium crypto trading community free for 30 days - normally $100/mo.
