The United Kingdom’s Financial Conduct Authority estimates that roughly 2.6 million U.Okay. shoppers have purchased cryptocurrency “at some point.”
On June 30, the FCA revealed the outcomes of its newest analysis into how shoppers work together with crypto markets within the U.Okay. It discovered that 1.9 million folks — 3.86% of the final grownup inhabitants (18+) — at present personal cryptocurrency.
This presents what the FCA considers to be a “statistically significant increase,” up from 3% within the final FCA client analysis report in 2019.
The enhance brings the overall variety of U.Okay. shoppers who’ve ever held cryptocurrencies at any level up from 1.5 million to its present estimated determine of two.6 million.
Aside from the marked uptick in crypto homeowners, consciousness of the trade seems to be on the rise — 73% of adults have heard of cryptocurrencies, as in contrast with 42% final yr.
Further breakdown of the watchdog’s findings
The FCA’s analysis signifies that 75% of the 1.9 million at present holding crypto maintain beneath £1,000 ($1,229) price. 83% of crypto homeowners purchase their belongings through non-U.Okay. based mostly exchanges.
In normal, holders’ stage of technical data and understanding of the potential dangers related to lack of protections and asset volatility is excessive, in accordance with the FCA.
One exception is that 11% of present and former crypto holders mistakenly consider their crypto belongings are coated by client protections — amounting to roughly 300,000 folks.
The FCA believes that this locations these shoppers vulnerable to monetary hurt. Yet it additionally discovered, in parallel, that the most well-liked motive for U.Okay. shoppers to purchase crypto was “as a gamble that could make or lose money,” with full consciousness of the volatility in crypto markets.
Another key discovering within the analysis is the obvious prevalence of crypto-related adverts and their affect on client selections.
45% of present and former holders mentioned they’d seen a crypto-related advert, of which 35% (400,000 folks) mentioned it made them extra more likely to buy crypto. Overall, 16% of present and former crypto-owners mentioned they’d been influenced by promoting.
The U.Okay. crypto local weather
As reported earlier this week, the FCA has simply launched an in depth assertion urging all native crypto enterprise operators to register with the authority by at the moment. Its newest registration necessities include a collection of particular compliance measures, primarily within the areas of Anti-Money Laundering and Counter-Terrorism Financing.
In its announcement at the moment, the FCA famous it’s working with the federal government and Bank of England as a part of the U.Okay. Cryptoassets Taskforce to deal with crypto-related client dangers whereas encouraging innovation.
The U.Okay.’s authorities price range in March 2020 indicated the federal government plans to seek the advice of on measures to doubtlessly convey sure crypto belongings into the scope of economic promotions regulation.