Interview: Kraken UK on the Future of Crypto

Crypto markets may be cyclical, but the UK crypto space seems to be heading in one direction only.

While the media attention may be on the U.S., where the Trump administration is currently set to remove the decade-long cold reception fostered by the Securities and Exchange Commission (SEC), the UK is busy creating a supportive regulatory atmosphere.

The result? More companies are actively bringing blockchain to the forefront of their operations.

Bivu Das, UK general manager of the Kraken Digital Asset Exchange, spoke to Techopedia about the increasing awareness of cryptocurrencies in the UK, building high-profile partnerships, and why blockchain education needs to improve.

Table of Contents Table of Contents

1. Key Takeaways
2. 12% of UK Public Owns Cryptocurrency
3. Shifting from Speculation to Real-world Utility
4. The Bottom Line
5. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. 12% of UK Public Owns Cryptocurrency
3. Shifting from Speculation to Real-world Utility
Show Full Guide
4. The Bottom Line
5. References

12% of UK Public Owns Cryptocurrency

While many focus on how the relationship between President Trump and Elon Musk will affect crypto in the U.S., the UK’s financial watchdog is taking significant steps toward crypto regulation. The Financial Conduct Authority (FCA) is opening a public consultation on improving cryptocurrency market transparency.

Through a discussion paper, the FCA seeks input before March 14, 2025, on rules covering crypto-asset admissions, disclosures, and market abuse prevention. While crypto remains unregulated mainly in the UK, the Labour government and FCA are working toward comprehensive oversight, with final rules expected by 2026.

The British Government first unveiled plans to make the UK a global hub for crypto in 2022, and three years on, 12% of the UK population owns crypto. Additionally, the UK government has been exploring the development of a central bank digital currency (CBDC),’ which aims to provide a digital alternative to cash and complement existing payment systems.

So, what does all this mean for vrypto in the UK?

Das told Techopedia:

“For the UK, our adoption has been growing. We’ve got a population that is open to innovation and digital services. We have a lot of talent here, not just in London but throughout the UK.

“I have been telling the new government to come and regulate crypto because it is essentially free growth. You have many investors and participants who want to play in this space.”

The recent Kraken Crypto FOMO Survey of 1,2000 crypto holders saw, in a tale as old as time, that fear of missing out (FOMO) and fear, uncertainty, and doubt (FUD) still dominate the mindshare in crypto.

Predictably, 88% of those surveyed feel they have missed significant gains, 84% have acted on FOMO about price surges, and 63% of crypto holders say FOMO or FUD negatively impacted their strategy.

But while speculation is the fun “Wild West” side of cryptocurrency, perhaps we are moving towards different times.

Das said:

“I think that maturity is going to show. The dips and the peaks are going to be less stark.

“We can be innovative in pushing that transition forward and bridging traditional finance and the digital asset-underpinned financial services markets over the next few years.

“We see a future that is underpinned by digital assets.”

Despite challenges around vague government roadmaps and the pace of regulation falling behind the pace of technological change, Das is hopeful that big changes are on the horizon.

“We’ve generally encouraged, even with previous governments and now with this new government, the UK’s approach with round tables and sandboxing sessions to help regulators, the Bank of England, and the Treasury understand the risks and benefits of this technology.”

However, it is not all plain sailing. Tulip Siddiq’s recent resignation as UK Treasury Minister threatens to dampen the mood in the UK — Siddiq was instrumental in developing the UK’s regulatory framework for digital assets and played a big part in targeting implementation for 2025.

Shifting from Speculation to Real-world Utility

Kraken pushes to keep the crypto conversation happening in political circlesgoing. However, there are still challenges in how people interact with financial services, and big questions remain around volatility and whether the momentum will continue.

Das added:

“I think we will hit the milestone of 25% of the UK owning a digital asset. It’s often a broad brush painted for crypto that people use for speculative reasons and to earn money quickly in a volatile market.

“Our research showed that Bitcoin was less volatile than several S&P 500 stocks last year, including Tesla and Meta.

But he warned focusing on price action risks missing the bigger picture:

“Despite the excitement surrounding the Web3 space, higher education is still playing catchup, and we desperately need to invest in the next generation of talent to fuel that growth.

“Today, we have around five universities offering courses in blockchain technology. That is pretty damning, given the number of jobs we have in this sector and the potential use case applications for it.

“We are engaging with educational institutes to help change that so we can have talented UK candidates who look to grow the crypto economy as they finish their education.”

The Bottom Line

Ultimately, the success hinges on sensible regulation, meaningful partnerships, and more substantial educational initiatives to equip the next generation of crypto professionals.

But there is much to be excited about in crypto with universal awareness, a growing user base, and decreasing volatility.

As interest spreads from grassroots to government, the UK joins every nation in a race to become a global leader in responsible crypto innovation.

All of which will fuel growth more than talk of going to the moon and buying Lambos. Maybe crypto really is growing up.