The cryptocurrency landscape in the UK is evolving as IG Group, a leading online trading platform, announces plans to allow retail investors to trade directly in digital currencies.

This week, IG will become the first publicly listed company in the UK to enable retail clients to buy and sell notable cryptocurrencies like bitcoin and ethereum. This initiative marks a significant development in the acceptance and mainstream adoption of digital assets within the country.

Michael Healy, the managing director of IG’s UK operations, described this step as “a major milestone in the UK’s crypto journey.” In light of this, the UK government has outlined intentions to regulate digital currencies, a crucial advancement that could facilitate wider acceptance of crypto.

According to research conducted by the Financial Conduct Authority (FCA), there has been a notable increase in cryptocurrency ownership among UK adults, rising from 4.4 percent in 2021 to 12 percent last year.

Healy emphasized that, “Customer demand is reaching a tipping point.” The rapid growth of the cryptocurrency market since the introduction of bitcoin in 2008 has resulted in the emergence of thousands of cryptocurrencies, collectively valued at nearly $3.3 trillion. This encompasses a range of tokens, from well-known coins to more unconventional options like dogecoin.

Unlike traditional currencies governed by central banks, cryptocurrencies operate on a decentralized framework, existing solely in digital spaces and often falling outside regulatory oversight.

As a member of the FTSE 250, IG plans to offer 38 digital tokens, including unique assets like the meme-inspired dogwifhat, through a collaboration with Uphold, an established digital assets platform.

It should be noted that the custody of crypto assets acquired by IG clients will be managed by Uphold, which does not fall under the protection of the Financial Services Compensation Scheme.

This new service signifies IG’s strategic expansion beyond its primary offerings of leveraged trading and traditional stockbroking.

Although other UK companies, including Revolut, provide cryptocurrency trading services, they do not have listings on the London stock exchange. Healy believes that being a publicly traded entity enhances client trust in IG.

Proponents of cryptocurrency argue that digital tokens and the underlying blockchain technology possess the power to disrupt and modernize the financial sector.

However, regulatory concerns persist. The FCA has previously cautioned that cryptocurrencies lack intrinsic value, warning retail investors of the significant financial risks associated with token trading, given their notorious price volatility.

Members of the House of Commons Treasury committee previously characterized substantial portions of the crypto industry as resembling a “Wild West.” There are ongoing fears that crypto markets can facilitate activities such as money laundering and scams. The collapse of FTX in 2022, one of the largest cryptocurrency exchanges, and the subsequent legal actions against its founder, Sam Bankman-Fried, have further shaken confidence in digital currencies.

Despite these challenges, institutional investment in crypto has grown, and changes in the regulatory framework are emerging.

Under President Biden, the US enforced stricter crypto regulations, while former President Trump has recently advocated for more favorable policies in the sector, fueling optimism for a potential policy shift in the US. The UK’s proactive approach to developing a comprehensive regulatory framework for crypto could be a pivotal moment, with Chancellor Rachel Reeves asserting that “solid regulations around crypto will enhance investor confidence.”