What to Expect from the UK Crypto Industry in 2024

When it comes to cryptocurrencies, there is no doubt that the idea and implementation of such technologies have come a long way in recent years. Not too long ago, almost everything about cryptocurrencies was considered a niche subject, with only the most tech-minded individuals seeming to care about them. However, we’re now seeing cryptocurrencies enter the mainstream at a staggering pace, with most people around the world having at least heard of them. 

Nevertheless, we are still in the early stages of the road to cryptocurrency mass adoption, and this is perhaps one of the most exciting things about it because it feels like we’re witnessing new and exciting growth in the industry on an almost daily basis.

In this post, we’re going to look at how crypto has evolved in recent years, as well as what is expected from the UK crypto industry throughout 2024 and beyond.

How Crypto Has Evolved in Recent Years

The cryptocurrency landscape is very different today than it was even a few years ago when many people believed it was nothing short of a risky investment for those with niche technological and financial interests.

These days, the adoption of cryptocurrencies into mainstream society has become a reality, with the likes of decentralised finance (DeFi) and non-fungible tokens (NFTs) earning a place in household discussions. As such, we’re now living in an era where the idea of decentralised apps and digital art are a reality, and the UK is full of people who want to get involved.

Nevertheless, it hasn’t all been fun and games because concerns over market stability and security, as well as regulatory scrutiny, have presented an ever-present challenge to the industry’s growth. 

What Is Expected from the UK Crypto Industry in 2024

Considering the above, there is a feeling that we’re entering the unknown when it comes to cryptocurrencies, with governments around the world finding it difficult to come to an agreed approach to their use in the everyday lives of citizens. 

The following is a small list of areas that are expected to see change in the UK crypto industry throughout 2024: 

Market Conditions

When it comes to cryptocurrencies, market conditions are always difficult to predict because they are often incredibly influenced by economic conditions. Over the last year or so, we have seen many geopolitical events take place that have the potential to continue to influence cryptocurrency markets throughout 2024. 

Factors such as interest rate changes may also impact the cryptocurrency markets, but this could work in the favour of investors who take an interest in alternative assets. Of course, the volatility of crypto markets can be extreme, so it’s always worth doing your research and only investing what you can afford to lose.

Response to Criminal Activities

The UK is notorious for cracking down on criminal activities and the crypto industry has seen some issues in this regard. The implementation of anti-money laundering and anti-terrorism financing measures by the Financial Conduct Authority is a great example of positive steps being taken. 

In 2024, we can expect to see further responses to criminal activities and a great example of a way this could occur includes the likes of increased Know Your Customer requirements, with businesses failing to follow suit punished.

Government Regulation

There is no doubt that the UK government will play a large role in the regulation of cryptocurrencies over the next few years. Indeed, we have also seen the Financial Conduct Authority categorise cryptocurrency assets and will, therefore, apply guidelines to businesses that interact with the sector. 

A fear within the crypto industry in the UK is that this government is pro-regulation, and an incoming Labour government would be the same, if not stricter. We have already seen other industries face much harsher regulation in the past few years, with the gambling industry and top online casino sites being one example. Concerning this, the UK government is expected to continue to align its regulations with international standards, which will mean the introduction and upholding of strict laws on things like misleading cryptocurrency promotions, as well as regulations that aim to protect consumers while still allowing for innovation to take place in the industry. 

NFTs

NFTs made a big splash throughout the previous year, although many interesting developments within the sector were perhaps overshadowed by a lot of noise about people earning millions from low-cost investments. Nevertheless, we can expect NFTs to continue to thrive in 2024, with artists and collectors appreciating their ability to verify ownership of original pieces. 

However, we are also likely to see less celebrity interference in this sector following some disastrous incidents, such as Cristiano Ronaldo facing a £791 million class action lawsuit for making apparent deceptive statements surrounding his promotion of digital art.