The United Kingdom is experiencing the fastest growth in cryptocurrency adoption globally, prompting calls from major exchanges for clearer regulatory frameworks to fully unlock the market’s potential.
The proportion of Britons investing in or owning cryptocurrencies surged from 18% to 24% in just one year, according to the “Global State of Crypto 2025” report by U.S.-based exchange Gemini. This growth rate positions the UK as the world leader among countries surveyed.
Gemini views the UK as a critical market, with local interest in digital assets moving in a positive direction. Daniel Slutzkin, Gemini’s UK Director, highlighted London’s historical role as a financial hub, predicting this will extend to digital assets.
Despite the rapid growth, a significant portion of the public remains cautious. Many potential investors await “official authorization” or greater regulatory clarity before committing funds.
Gemini has maintained ongoing dialogue with the Financial Conduct Authority (FCA), the UK’s financial regulator. The FCA’s stance towards cryptocurrencies has “markedly” shifted, showing increased openness to the sector.
A comprehensive regulatory framework, covering stablecoins, lending, staking, trading platforms, and custody, is anticipated to be fully implemented by 2026. This phased approach aims to establish the UK as a global digital asset hub while safeguarding consumers.
Slutzkin stated that 2026 “will definitely be the year of the regulatory framework.” He sees this as a positive signal for investors and an opportunity for companies to operate with greater legitimacy through regulation.
Another U.S.-based exchange, Kraken, also issued a similar call to UK regulators on the same day, urging for greater legal clarity without hindering market innovation.
The UK has already begun implementing new tax reporting requirements for cryptocurrency platforms. Centralized exchanges must now share account and transaction information for UK residents with HMRC, the national tax authority.
While Gemini supports transparency, it noted these rules impose a “significant burden” on compliance teams. Smaller startups may struggle to adapt, unlike larger firms with international resources.
Some observers fear stringent data sharing could push users towards decentralized finance (DeFi) platforms, which offer greater privacy. Slutzkin expressed hope that new rules would not inadvertently encourage this shift.
In a related development, the FCA recently lifted its ban on crypto Exchange-Traded Notes (ETNs) for retail investors. This allowed major firms like BlackRock, 21Shares, Bitwise, and WisdomTree to list Bitcoin and Ethereum investment products on the London Stock Exchange.
Slutzkin did not rule out Gemini’s future entry into the UK ETN market. He also dismissed recent market volatility in October as indicative of a new bear cycle, citing a quick recovery.
Gemini continues to focus on custody, exchange, and staking services. The company prioritizes education and regulation, aiming to ensure users feel their assets are secure.