UK Crypto Investors Remain Resilient Amid Market Challenges, Push for Regulatory Clarity
Staff Writer • 2024-11-14
London, UK – The crypto winter may be over, but UK investors are still braving chilly regulatory waters. According to previously unreleased data from Gemini’s 2024 Global State of Crypto Report, the UK's crypto community is holding strong, with 93% of current crypto holders planning to buy digital assets within the next year. Yet, nearly half of respondents (49%) flagged the need for clearer government regulation to bolster trust in the ecosystem, highlighting an area of growing concern for both investors and policymakers. This data drop comes as Gemini ramps up its European presence with an ambitious advertising campaign, “Go Where Pounds Won’t.” Featuring futuristic billboards by acclaimed artist Matt Griffin, the campaign imagines a world powered by crypto—a stark contrast to the UK’s regulatory ambiguity. UK Crypto Resilience: A Market Defying Expectations The UK crypto market has shown remarkable steadiness in 2024. Crypto ownership remains at 18%, unchanged from two years ago, even as market turbulence in 2022 sent many investors scrambling. Interestingly, crypto sell-offs in the UK have been minimal, with just 15% of past owners offloading their assets in the past six months—a rate significantly lower than in markets like the US, France, and Turkey. “The resilience of UK investors underscores growing confidence in crypto as a long-term investment class,” said Gillian Lynch, CEO of UK & Europe at Gemini. “It’s a market poised for expansion as we address barriers to adoption, particularly regulation and education.” Other key indicators of UK investor confidence: • 59% of UK crypto owners allocate at least 5% of their portfolios to digital assets, surpassing the global average by 2%. • 77% of past UK holders plan to re-enter the crypto market within the next year, slightly outpacing global figures. Regulation: The Missing Puzzle Piece While the UK’s commitment to crypto is evident, regulatory uncertainty looms large. The EU’s Markets in Crypto Assets Regulation (MiCAR) has provided a clear framework for digital assets across member states, leaving the UK trailing in comparison. Survey findings reveal: • 38% of UK non-holders cite regulatory uncertainty as a barrier to entering the market, up from 34% in 2022. • 21% of past UK crypto owners want stronger government regulation. Despite this, progress is underway. Gemini has commended recent regulatory strides, including the Financial Promotions regime and updated AML/CTF guidelines from the FCA. However, as Lynch noted, “a comprehensive framework is essential to ensure consumer trust and foster innovation in the sector.” Crypto Adoption: Opportunities and Challenges The 2024 Global State of Crypto Report also highlights key trends shaping the UK market: • Long-Term Investment Appeal: 64% of UK respondents view crypto as a long-term asset, with 45% identifying it as a profit-generating tool. • Knowledge Gap: Only 14% of Britons claim a good understanding of crypto, and 69% are unaware of exchange-traded products (ETPs), revealing significant education opportunities. • Gender Disparity: Women’s participation in crypto has declined, with men now comprising 70% of the UK market.“Our findings show clear opportunities to onboard new users, win back past ones, and target underrepresented groups like women,” Lynch added. Gemini’s Vision: “Go Where Pounds Won’t” Gemini’s bold new campaign, launched in London last week, offers a glimpse into the future of crypto-driven economies. Featuring artwork from Matt Griffin, known for his work on Dune and Star Wars, the campaign presents a vision of humanity thriving in a digital economy fueled by blockchain innovation. The tagline, “Go Where Pounds Won’t,” embodies Gemini’s ambition to expand its European footprint and bring crypto’s transformative potential to the masses. As part of the campaign, Gemini introduced MarsSafariCo.com, a fictional travel agency showcasing futuristic designs and inviting users to imagine a crypto-powered world. What’s Next? As the UK’s crypto market evolves, the appetite for digital assets remains robust. However, for the industry to reach its full potential, the UK government must provide clear regulatory guidance. Gemini’s dual focus on education and innovation positions it as a key player in bridging the gap, empowering UK investors to explore the limitless opportunities of the digital economy.
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