As the British embrace Crypto Assets, businesses must catch up to establish a foothold.

Source: Cointelegraph Original: "As the British embrace cryptocurrency, businesses must catch up to establish a foothold"

Author of the opinion: Uldis Tēraudkalns, Chief Revenue Officer of Paybis.

In the UK, the number of people owning cryptocurrencies has increased from 5 million to approximately 7 million, with a clear shift towards sustainable and practical use cases. If the adoption rate continues to grow, the UK's digital asset industry will attract millions of new users in the coming years, thereby stimulating the demand for simplifying the flow of funds between the crypto economy and the fiat economy.

As cryptocurrency becomes mainstream in the UK, British businesses must provide crypto solutions for their customers; otherwise, they will fall behind in the fierce competition.

The latest research from the UK's Financial Conduct Authority (FCA) shows that the acceptance of digital currencies among the British public is astonishing. 12% of adults in the UK own cryptocurrency, approximately 7 million users — a significant increase compared to 10% in 2022, which was about 5 million.

The average value of cryptocurrency holdings rose from £1,595 to £1,842 (,334 USD ). The proportion of investors holding larger asset amounts has also significantly increased: 19% of survey participants reported holding between £5,001 and £10,000 in cryptocurrencies, while two years ago this proportion was only 6%.

This data frequently appears in news articles covering FCA research. However, upon delving into this 89-page report, more thought-provoking facts can be uncovered. For instance, the motivations for purchasing cryptocurrencies have shifted. During the period of 2021-2022, speculative gambling was the primary reason, but this has now been replaced by the strategy of incorporating cryptocurrencies as part of a broader investment portfolio. Notably, millions of users who initially entered the market for gambling reasons have stayed for other reasons—between 2021 and 2022, the rate of digital asset holding surged from 4% to 10%.

The shift in investment purposes indicates that the British have adopted a more sustainable and strategic approach to cryptocurrency, increasingly viewing it as an asset class with long-term value. Data on stablecoin holdings further supports this view: 18% of respondents hold Tether ( USDT ), compared to just 6% three years ago. This not only balances their portfolios but also expands the range of use cases for the British public.

Last but not least, the proportion of people buying cryptocurrencies for political choices or ideological reasons dropped from 16% in 2021 to 9% in 2022, and remained stable in 2024. This data point indicates that people are increasingly buying cryptocurrencies out of practical considerations rather than a belief in decentralization philosophy and values.

The FCA's research highlights that the demand for crypto assets in the UK has significantly risen, no longer limited to early adopters, tech enthusiasts, and "gamblers". A broader group is exploring the potential of cryptocurrencies for investment, payments, and remittances. They pursue lasting value rather than immediate profits — seeking sustainable cryptocurrency applications that are often closely tied to fiat systems.

The FCA's research clearly shows that there is a significant demand among UK users for a bridge between cryptocurrencies and fiat currencies. In 2024, 43% of digital asset holders stated they had converted cryptocurrencies into fiat currencies, up from 33% in 2022. 13% of users reported using cryptocurrencies to purchase other financial products. One in five UK cryptocurrency holders has used it to buy goods and services.

Every wave of cryptocurrency adoption brings more users who view digital assets as tools for solving everyday tasks. These tasks often involve fiat currency—therefore, the demand for solutions that can seamlessly integrate cryptocurrencies with traditional financial systems is on the rise. Mainstream users seek convenience, and smooth conversion between the two types of currency has become a necessary condition for providing this convenience.

From a more macro perspective, we can see that cryptocurrency has become an integral part of the UK and global economy. Traditional financial institutions are integrating cryptocurrency services, and central banks, including the Bank of England and the European Central Bank, are actively exploring digital currencies.

The adoption trend in the UK reflects a widespread shift towards digital financial solutions on a global scale, with increasing interest also evident in North America, Western Europe, and Asian countries.

The increase in cryptocurrency holdings in the UK has drawn significant attention from the FCA, making cryptocurrency regulation one of the country's top legislative priorities. Recently, the agency released a detailed roadmap, planning to consult on stablecoin issuance and custody starting at the end of 2024, and to continue discussions on trading platforms and decentralized finance in 2025. The final regulatory framework is expected to be officially introduced in 2026.

Data from the UK indicates that the number of residents holding cryptocurrency assets may significantly increase in the coming years. According to FCA research, a large number of users will use cryptocurrencies for payment transactions, purchasing goods and services, as well as converting between fiat and cryptocurrencies. Businesses looking to capitalize on this trend should prioritize developing solutions that provide seamless cryptocurrency-fiat transactions to meet the urgent demand for a bridge between the two economic systems.

Companies that ensure accessibility and user satisfaction will not only gain a competitive advantage. As more and more people embrace cryptocurrency operations, they will lay a solid foundation for their long-term survival in the market.

The current market environment provides ideal conditions for companies to join the cryptocurrency wave. On one hand, the expansion of the cryptocurrency-fiat trading market has become a foregone conclusion—now is still early enough to enter and capture a significant market share. On the other hand, the infrastructure has matured, offering direct and effective solutions that enable companies to launch cryptocurrency operations within just a few days. Companies only need to take this step now to potentially become a new driving force for the growth of the UK cryptocurrency market.

Author of the opinion: Uldis Tēraudkalns, Chief Revenue Officer of Paybis

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