Inflation has come back up again in the UK, and that has unsettled many households. Bitpanda UK said that 6.5 million UK adults now hold cryptoassets. Of those who already invest, 22% say inflation is one of the reasons. Another 18% are betting on crypto because of possible changes to traditional savings.
January was the first time in 5 months that UK inflation came up. That has led many people to look at alternatives to cash savings. Crypto is seen as one option to spread risk across different assets.
AI has entered this space in a noticeable way. Bitpanda UK found that 19% of Britons have used AI to help make decisions about cryptocurrency instead of depending only on established information sources. In the 18 to 34 year old group, that number goes up to 39%.
How Much Do Users Trust AI Tools?
Trust in AI advice is high, because of those who used AI for crypto decisions, 74% said the information was trustworthy. Within that group, 28% rated it as very trustworthy, according to Bitpanda UK.
Users are not asking AI for one task alone. The research shows that 30% use it to learn basic concepts. A further 26% ask for help understanding technical terms, and the same share use it to research cryptoassets and trends. Around 25% request investment ideas or strategy input, and 23% want help on how to buy, sell or store cryptoassets.
Bitpanda UK reported that 19% of those who have used generative AI for crypto have used it to create or analyse smart contracts. That moves AI from an educational tool into something that shapes direct participation in crypto markets.
Kevan Edgerton, UK Director at Bitpanda, said: “Britons are becoming more proactive about how they manage their money, especially in a climate where inflation has put real pressure on household finances. However, what’s particularly striking is the growing role AI is playing in how people learn, research, and make decisions.
“Whilst AI can be a powerful tool for improving financial understanding, it shouldn’t replace proper research or trusted sources. It’s important to thoroughly research and assess the risks before making any financial decision.”
His comments show a tension. People value quick answers and tailored explanations, but the risks in crypto have not gone away.
What Is The Regulator Doing About Crypto Risks?
The FCA updated its proposals in December, with the article last updated on the 2nd of this month. It is asking for views on new proposals as the next step in shaping the UK’s crypto rules. The aim is an open, sustainable and competitive crypto market that people can trust.
The regulator said it wants a market where innovation can thrive but where people understand the risks. It made clear that regulation cannot and should not remove all risk. Instead, anyone investing in crypto should do so with their eyes open.
Its consultation covers admissions and disclosures for listing cryptoassets, measures against insider trading and manipulation, standards for trading platforms, and requirements for intermediaries. It also looks at staking, lending and borrowing, and decentralised finance. On stablecoins, it said UK issuers will not be able to pass interest from their own backing assets to holders.
David Geale, executive director for payments and digital finance at the FCA, said: “Regulation is coming – and we want to get it right. We’ve listened to feedback, and now we’re setting out our proposals for the UK’s crypto regime.
“Our goal is to have a regime that protects consumers, supports innovation and promotes trust. We welcome feedback to help us finalise these rules.”
The consultation closed on Thursday last week. In the meantime, the FCA reminds consumers that crypto is largely unregulated, except for financial promotions and financial crime purposes.
AI tools are not regulated as financial advisers in this context. That leaves individuals carrying the responsibility. Inflation anxiety, digital habits and easy access to AI explain why many continue to turn to it for crypto advice. The rules are coming, but the appetite for quick digital guidance is already embedded in how people manage their money.
