Strong Adoption, Strong Foundations — What UK Crypto Needs Next To Keep Pace Globally
In Brief
The UK has built the early framework for a mature crypto market. Now it needs practical improvements that reflect how consumers are actually using digital assets to ensure the country doesn’t fall behind international peers.
Asher Tan is the Co-Founder and CEO of CoinJar, one of the world’s longest-running cryptocurrency exchanges. With a background in economics and finance, he has overseen the development of accessible, user-focused financial products that simplify how people buy, sell and manage digital assets. Since launching in 2013, CoinJar has served more than 800,000 customers and processed billions of dollars in transactions across a curated selection of more than 60 cryptocurrencies.
Under Asher’s leadership, CoinJar has established a strong reputation for regulatory integrity and security. [a]
Crypto users in the UK no longer fit the old stereotypes. The typical UK crypto user is now in their early forties, with a stable income and a balanced approach to risk – a profile that looks much closer to a traditional long-term investor than a speculative trader.
Crypto ownership in the UK has reached its highest level yet. And despite a tough macroeconomic backdrop, we continue to see retail customers add to their positions. In the weeks leading up to the UK Autumn Budget, GBP deposits on CoinJar were 16% higher than withdrawals – a sign that people are taking a steady, long-term view rather than pulling back.
The foundations for a mature market are already in place. What’s missing is practical, retail-friendly policy that makes digital assets easier to use and understand.
That’s the gap the UK needs to close if it wants crypto to feel like a normal part of everyday financial life rather than something people have to work around.
The Investors Are Here – Now the UK needs better usability
Over the past few years, the number of UK adults holding digital assets has risen faster than almost anywhere else globally.
FCA research shows that around 12% of UK adults now hold some form of crypto, up from roughly 2% in its 2022 survey. These are not fringe investors. They are everyday consumers looking for diversification, faster transfers and straightforward ways to manage their finances.
Behaviour on our platform reflects this shift. Deposit activity has remained consistently strong even as the wider economy slows. During recent volatility, around 89% of net buying came from new customers. Long-term investors tend to rebalance during rapid market swings; newcomers often see these moments as windows to enter. That pattern looks much closer to the behaviour seen in equities than to the stereotype of speculative crypto trading.
All of this points to a market that’s maturing on its own terms. The next step is ensuring the policy environment supports that shift rather than slowing it down.
Regulation is progressing – but mostly at the foundational level
The UK has made progress in creating the guardrails needed for a resilient market. The stablecoin regime, the Digital Securities Sandbox and the alignment of crypto oversight under the Financial Services and Markets Act all signal a more structured approach.
But the most recent developments – including the move to the Cryptoasset Reporting Framework (CARF) in 2026 are still focused on bringing digital assets in line with existing standards. CARF requires crypto service providers to collect and share customer data with HMRC, which will then use that information to cross-check tax returns. It’s an important step, but it doesn’t change how people use crypto day to day.
On the exchange side, expectations are clearer. HMRC has already issued the templates that service providers will use for future tax reporting.
What’s still missing is the practical layer – the part that makes these rules straightforward for everyday users.
Make tax reporting more straightforward for individuals
While service providers now have clearer reporting expectations under CARF, ordinary taxpayers still face a fragmented process. They often need to reconstruct historic pricing, track transfers manually or rely on third-party tools that interpret rules differently.
Nothing new needs to be invented here. HMRC already has the data. The next step is allowing that information to sit more naturally within an individual’s tax workflow so that everyday users have a clearer, easier path to meeting their obligations.
Reducing friction encourages better compliance and broadens participation in digital assets.
Make small-value crypto payments easier to use
Another area that would benefit from the same kind of practicality is low-value payments.
Right now in the UK, crypto payments are regulated the same regardless of size, which can add friction even when sending small amounts.
This is out of step with how most people use digital money. When someone taps their card, sends a bank transfer to a friend or pays for something online, small amounts move with little friction.
Creating a similar light-touch threshold for low-value crypto payments, while keeping safeguards in place, would make day-to-day usage far more practical.
A modest change like this wouldn’t alter the regulatory backbone, but it would bring crypto closer to the experience people already expect from modern payments.
Improve the viability of crypto within ISA structures
Day-to-day usage is one part of the picture. Longer-term planning is another. Many UK investors now treat digital assets as part of their broader savings strategy, but the current ISA rules don’t reflect that behaviour.
The UK has taken a step by allowing certain crypto-linked instruments into ISAs, but the structure doesn’t make these accounts practical for meaningful long-term holdings. Creating a workable way to integrate digital assets into the ISA system would meet people where they already are.
This isn’t about encouraging risk-taking. It’s about recognising real consumer behaviour and giving people a clear, compliant route to manage it.
None of these ideas require a wholesale rewrite of the UK’s regulatory approach. They simply align the rules with how people are already using digital assets — and how they expect modern financial services to work.
People are already using crypto to solve real problems
The UK’s approach to regulation has been firm but cautious. That’s good. But caution shouldn’t mean stopping progress.
We already have the users, the demand and some of the regulatory foundation. Crypto’s growth is happening regardless of policy pace.
Many small businesses now accept digital assets for faster settlement, particularly for international payments, and cross-border workers increasingly rely on stablecoins to avoid delays and fees. People are finding ways to use crypto because it solves practical problems today.
The UK has a choice: keep treating crypto as something to manage, or recognise it as a tool that can improve everyday financial life. And with independent market forecasts pointing to continued growth in UK adoption over the next few years, the case for action is only getting stronger.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
