As the world of digital currencies continues to grow in popularity, a number of new regulations have emerged. From anti-money laundering (AML) to terrorism financing prevention, UK Cryptocurrency Market has established a robust set of frameworks to ensure that those who engage in crypto activities do so responsibly.

The UK’s main regulatory body for crypto assets is the Financial Conduct Authority, which enforces AML policies and maintains a register of providers in addition to establishing guidelines. HM Treasury and the Bank of England are also important bodies that oversee the industry in some way.

What’s Happening in the UK Cryptocurrency Space

However, because crypto assets are not backed by the government, they do not enjoy the same level of protection that traditional deposits enjoy. This means that in the event of a collapse, you would be at risk of losing your entire investment. In addition, you may not be covered by the FSCS, which protects bank deposits up to certain limits in the case of insolvency.

Nevertheless, the demand for crypto assets is growing among wealthy individuals and businesses. Consequently, wealth advisers are increasingly being asked to help clients understand strategies and dig into derivative variants. They are also being asked to assess the tax implications and weigh up bets on underlying blockchain infrastructure.

Previously unreleased data collated as part of Gemini’s 2024 State of Crypto report showed that even among those who don’t currently own crypto assets, 34% said that they would be more likely to buy if they saw clearer government regulation. This is in line with the view held by the FCA that the industry needs clear regulation to thrive and drive wider adoption.