The Financial Conducting Authority (FCA), the UK’s financial services regulator, has released new research that reveals a steady increase in the number of adults owning cryptocurrency.
The Financial Conduct Authority (FCA), the UK’s financial services regulator, has released new research that reveals a steady increase in the number of adults owning cryptocurrency.
The research revealed that 2.3 million adults in the UK held cryptocurrencies (1.9 million last year). Similarly, awareness is growing steadily. 78% of adults have heard of cryptocurrencies, compared to 73% last year.
The FCA also found that interest in cryptocurrencies increased, with more than half of those investing in the industry saying they had a positive experience and would reinvest (from 41% last year to 53%). Considering the performance of Bitcoin and other cryptocurrencies over the last 12 months, this may be an expected development.
According to the FCA, though, cryptocurrencies insight is on the decline. The research shows that 71% of respondents were able to accurately describe the definition of cryptocurrency from a list of phrases.
The FCA stressed that many cryptocurrency projects are unregulated and stated that if something goes wrong, it is unlikely that an affected person will have access to the FSCS or the Financial Ombudsman Service for support.
“If consumers invest in these types of products, they should be prepared to lose all their money,” said Sheldon Mills, FCA’s director of consumer and competition .
Over the past year, the FCA has taken measures to restrict consumer access to riskier forms of cryptocurrency trading. In January of this year, the agency banned the sale of cryptocurrency derivatives to individual investors, estimating that this would prevent consumer losses of up to £53m ($74m).