Uks Latest Crypto Revolution Has Over Half Of Banks Accepting Crypto Transaction
In the UK, crypto holders are enjoying the benefits of the country’s lenient stance on owning, using, and trading cryptocurrencies and digital assets.
Although the UK embraced the speculative and risky asset class, this isn’t the case for many other countries. Indonesia, Egypt, Bolivia, Bangladesh, and Algeria are just some of the countries where digital currencies are banned.
Meanwhile, countries like the US have a huge market for crypto but are working out the kinks to come up with a regulatory framework.
UK In The Process of Developing Crypto Regulations
The growth in crypto adoption comes at a great time, considering that they’re in the process of crafting crypto regulations.
The aim of these policies is to make the country a hotspot for all things related to digital assets. Of course, this isn’t a new idea, and the United Kingdom is only learning from other countries that are seeing a positive response.
After the UK embraced a pro-crypto stance, the market has seen numerous changes for the better. For the most part, more investors are joining the crypto market via crypto exchanges.
Businesses Dealing with Crypto Have to Register With FCA
Nevertheless, the UK is still looking to crack down on illicit crypto-related activities, so businesses that will deal with digital tokens have to get approval from the FCA.
Having companies register with the Financial Conduct Authority reduces the risks of nefarious pump-and-dump schemes. Moreover, it bolsters investors’ trust in crypto by giving them reassurance.
It’s no secret that companies dealing with digital assets are notorious for partaking in money laundering schemes.
Therefore, the whole point of making companies go through the process is to enforce anti-money laundering regulations.
Not to mention, banks are starting to have a positive approach toward cryptocurrencies. That’s because a majority of them are allowing customers to conduct transactions with crypto exchanges.
Rates of Cryptocurrency Adoption in the Country
According to data from Finder, approximately 4.1 million citizens of the UK own some form of cryptocurrency. While this sounds like a lot, it makes up only 8 percent of the population.
Among these, a third of crypto holders own Bitcoin, which is the top-ranking cryptocurrency by market capitalization.
This shouldn’t come as a surprise because Bitcoin is still ahead of the market despite having trouble retaining its previous trading price.
Compared to the global average of crypto ownership, which is 15 percent, it’s safe to say that the UK has a fairly low rate. In contrast, India, with a much bigger population, has a crypto ownership rate of 29 percent.
Even so, Finder’s study shows that among the 17 institutions that participated in the study, only 47 percent don’t offer some sort of crypto policies. With trends like these, the UK is on its way to becoming a global crypto hotspot.