The FCA’s fourth consumer report shows that crypto asset ownership in the UK has increased 27% since last year – Bitcoin News
The UK’s Financial Conduct Authority (FCA) has published a research report showing that ownership of crypto assets has increased dramatically. According to the study, cryptocurrency ownership has increased more than 27% since last year, as FCA estimates show 2.3 million adults own digital currencies, up from 1.9 million in 2020.
The UK regulator publishes the 2021 crypto consumer report
The UK’s financial regulator, which oversees 58,000 financial services companies and financial markets, has released a report that covers the crypto asset economy.
Not only does it show that cryptocurrency ownership has increased dramatically since last year, but the study also shows that people are viewing digital currencies as an “alternative to mainstream investments.”
Consumer research notes that attitudes towards cryptocurrencies have changed. “38% of crypto users consider it a game of chance (up from 47% last year),” the FCA report said.
“In contrast, the general understanding of cryptocurrencies is declining, suggesting that some people who have heard of cryptocurrencies may not fully understand that only 71% correctly identified the definition of cryptocurrency from a list of statements,” says the FCA.
“Enthusiasm for [crypto assets] growing, with more than half of crypto users saying they have had a positive experience so far and are likely to buy more (up from 41% to 53%). Fewer people also regret buying cryptocurrencies, from 15% to 11%, ”the FCA report adds.
In a note to Bitcoin.com News, UK regional manager and head of business development at Etoro, Dan Moczulski, said the FCA’s report “paints an interesting picture of developments in the crypto-asset market in the UK over the past year”. Moczulski further stated:
It shows a significant increase in the number of people using and investing in crypto, as well as wider public awareness. That there are now 2.3 million active crypto asset investors in the UK [which] makes the asset class comparable to active stock traders in terms of the number of participants – a not insignificant milestone. There are some really exciting options in crypto, with a wide variety of investable coins. These numbers show that it has really become mainstream in the UK.
43% advise against buying crypto, 12% believe it is protected by UK consumer protection
The study, compiled by the FCA, is the regulator’s fourth consumer research publication on crypto-asset ownership. 1 in 10 people who have heard of cryptocurrency investments are also aware of some of the consumer warnings that the FCA issues from time to time.
“43% said they were advised against buying crypto. Most consumers acknowledge that crypto investments are not protected, although 12% of crypto users believe otherwise, ”the fourth consumer research study by the FCA concludes.
“The investigation shows an increased interest in [crypto assets] with UK customers. The market has continued to grow and some investors have benefited from the rising prices, ”said Sheldon Mills, FCA’s executive director of consumer and competition.
“However, it is important that customers understand that if something goes wrong, they will likely not have access to the FSCS or the Financial Ombudsman Service as these products are largely unregulated. When consumers invest in these types of products, they should be ready to lose all of their money, ”added Mills.
FCA Crypto Report Highlights: Understanding and Awareness Are Not the Same
“We see that 78% of UK adults have heard of cryptocurrencies. This has increased in our surveys – from 42% in 2019 to 73% in 2020 and now by a further 5 percentage points (pp) in 2021, ”emphasize the FCA researchers. “But awareness doesn’t necessarily mean understanding. Only 71% of those who had heard of crypto correctly identified its definition from a list of statements. This was a statistically significant decrease of 4 percentage points compared to 2020. “The FCA report further emphasizes:
In other words, although more people have now heard about cryptocurrency, general understanding has dropped. This suggests that there is a risk that consumers will engage in cryptocurrency without clearly understanding it.
What do you think of the FCA’s fourth consumer research publication on crypto-asset ownership? Let us know what you think on this matter in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons, 4th FCA Consumer Research Report on Crypto Assets
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
source https://bidsfor.me/the-fcas-fourth-consumer-report-shows-that-crypto-asset-ownership-in-the-uk-has-increased-27-since-last-year-bitcoin-news/
Comments
Post a Comment