UK FCA Chief Concerned About Young Investors Choosing Crypto Over Traditional Assets

Nikhil Rathi, CEO of the UK Financial Conduct Authority (FCA), has raised concerns over the growing number of young people turning to cryptocurrencies like Bitcoin as their first investment, rather than traditional options such as stocks or bonds.

Speaking before a parliamentary committee, Rathi cited statistics showing that direct stock ownership in the UK is significantly lower than in the US (38%) and Sweden (over 20%). Meanwhile, millions of Britons under 35 are entering the market through crypto assets.

“We have developed a distinct approach to risk and compensation in the UK, which may differ from other parts of the world,” Rathi noted.

FCA’s Five-Year Plan: Encouraging Traditional Investments

On Tuesday, the FCA unveiled a new strategy focusing on four key objectives, including helping consumers make better financial decisions. The regulator will monitor how many investors with portfolios exceeding £10,000 opt for "mainstream investments" (e.g., stocks and bonds) by 2030.

Rathi highlighted the challenge posed by young investors’ crypto adoption: “In the UK, there are several million people under 35 for whom crypto is their first financial investment product.”

Regulatory Shifts in the Crypto Market

Currently, the UK crypto market remains largely unregulated, with firms only required to register with the FCA for anti-money laundering compliance. However, the government plans to introduce tailored legislation for crypto businesses.

According to FCA data and a YouGov survey, around 12% of UK adults (roughly 7 million people) hold crypto assets, with men under 35 most likely to borrow money to invest in digital currencies.

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