When it comes to cryptocurrencies, there is no doubt that the ideas and implementation of these technologies have made great strides in recent years. Not long ago, almost everything about cryptocurrency was considered a niche topic, and only the most technically minded people seemed to be interested in it. But now we are seeing cryptocurrencies enter the mainstream at an incredible rate, to the point where most people in the world have at least heard of them.
Regardless, we’re still in the early stages of mass adoption of cryptocurrencies, and this is probably one of the most exciting things about it, as it feels like we’re seeing new and exciting growth in the industry almost every day.
In this post, we will take a look at how cryptocurrencies have developed in recent years, and what to expect from the UK cryptocurrency industry into 2024 and beyond.
How has cryptocurrency developed in recent years?
Today’s cryptocurrency landscape is very different from just a few years ago, when many believed it to be nothing more than a risky investment for those with niche technical and financial interests.
These days, decentralized finance (DeFi), non-fungible tokens (NFTs), etc. have found a place in household discussions, making introducing cryptocurrencies into mainstream society a reality. We live in an era where the idea of decentralized apps and digital art is becoming a reality, and the UK is full of people wanting to get involved.
Nonetheless, it hasn’t been all fun and games as concerns about market stability, security and regulatory scrutiny have always presented challenges to industry growth.
What to expect from the UK cryptocurrency industry in 2024
Considering the above, there is a sense that we are entering uncharted territory when it comes to cryptocurrencies, with governments around the world struggling to find an agreed-upon approach to the use of cryptocurrencies in the daily lives of their citizens.
Below is a small list of areas where we expect to see change in the UK cryptocurrency industry throughout 2024.
market situation
In the case of cryptocurrencies, market conditions are always difficult to predict as they are often greatly influenced by economic conditions. Over the past year or so, we have seen a number of geopolitical events occur that will likely continue to impact cryptocurrency markets throughout 2024.
Factors such as interest rate fluctuations can also affect the cryptocurrency market, but this can work in favor of investors interested in alternative assets. Of course, volatility in the cryptocurrency market can be extreme, so it’s always a good idea to do your research and only invest what you can afford to lose.
Response to criminal activity
The UK is notorious for cracking down on criminal activity and the cryptocurrency industry has seen some problems with this. The Financial Conduct Authority’s implementation of anti-money laundering and counter-terrorist financing measures is a good example of positive action being taken.
We expect to see further responses to criminal activity in 2024, and good examples of how this could happen include increased know-your-customer requirements and penalties for businesses that do not comply.
government regulations
There is no doubt that the UK government will play a big role in cryptocurrency regulation in the coming years. Indeed, we have confirmed that the Financial Conduct Authority will classify cryptocurrency assets and apply guidance to businesses interacting with the sector accordingly.
The concern within the UK cryptocurrency industry is that this government supports regulation and that the next Labor government will be just as strict, if not stricter. We have already seen other industries face much stricter regulations over the past few years, including the gambling industry and the best online casino sites. In this regard, the UK Government is expected to continue to align its regulations with international standards. This means introducing and maintaining strict laws against things like misleading cryptocurrency promotions, while also introducing and maintaining regulations that aim to protect consumers while allowing for innovation. It happens in the industry.
NFT
NFTs have been wildly popular throughout the previous year, but many of the exciting developments within the sector may have been overshadowed by a lot of noise about people making millions from low-cost investments. Nonetheless, we can expect NFTs to continue to thrive in 2024 as artists and collectors appreciate the ability to verify ownership of original works.
However, following some disastrous events, such as Cristiano Ronaldo being hit with a £791 million class action lawsuit for allegedly making patently deceptive statements in relation to the promotion of digital art, it is possible that there will be less celebrity interference in this area.