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New research by the FCA regarding crypto-assets

The Financial Conduct Authority, the UK regulator, estimates that 8.2 million adults currently hold digital currencies
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The Financial Conduct Authority (FCA) the UK regulator, estimates that 8.2 million adults currently hold digital currencies.

The FCA questionnaire was focused on the ownership and popularity of unregulated, transferable tokens, which represent the majority of digital assets. The study follows two quantitative ones and one qualitative study made from 2018. 

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The Financial Conduct Authority stated that the research came after a period of increasing interest from citizens, the media, and also the government. It also follows the growing trend of institutional investing in the market.

According to the results, the number of people that own digital currencies has increased, reaching 2.3 million from 1.9 in 2020. In a population of 52 million, 78% of adults have heard of crypto at least once.

A curious outcome of the questionnaire is the declining number of people who understand digital assets. This suggests that individuals purchasing virtual currencies are not well informed about what they are investing in.

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Another conclusion of the regulator’s research is related to the crypto reputation. 38% of the people asked, consider virtual currencies as a gamble. The percentage has decreased noticeably from last year’s 47%.

The median holding, on the other hand, has grown from £260 to £300. In the meantime, the profile of crypto holders is very similar to last year: they are mostly males, over the age of 35, and at AB social grade.

When it comes to future plans, approximately 50% of those that own digital currencies intend to purchase more. A similar number of individuals declared during the research that they ‘know they’ll make money at some point’.

As for which cryptos were included in the survey, ‘Two thirds (66%) of crypto users hold Bitcoin, up 3pp. The next most popular currencies showed little change, including Ethereum (35%), Litecoin (21%), XRP/Ripple (18%), and Bitcoin Cash (15%)’.

“The research highlights increased interest in cryptoassets among U.K. customers. If consumers invest in these types of products, they should be prepared to lose all their money.”

Sheldon Mills, FCA Executive Director

You can read more about the conclusions of the FCA research here.

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