FCA Research Reveals 1.1 Million Spike in Cryptoasset Buyers

An estimated 2.6 million UK consumers have bought cryptoassets at some point, according to new FCA research.

The number marks a 1.1 million increase since the FCA completed a face-to-face survey on the same topic last year. Of the 1.9 million that still hold their cryptoassets, such as Bitcoin, Ripple, or Ether, half have more than £260, the FCA unveiled today.

The research forms part of the FCA’s work alongside the Government and Bank of England to understand market size, consumer profiles, and attitudes towards cryptoassets.

Amongst the other key findings of the study, which was conducted online by YouGov and saw a total of 2,681 participants questioned, were that the majority of cryptoasset owners are generally knowledgeable about the product, are aware of the lack of regulatory protection afforded and understand the risk of price Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

The study also showed that an estimated 300,000 cryptoasset owners believe they have protection, which leaves them at potential risk of financial harm.

Adverts play a key role in influencing cryptoasset consumers’ decisions, with more than a third of respondents saying an advert made them more likely to purchase cryptoassets, according to the research.

Of those who purchase cryptoassets, 83% do so through non-UK based exchanges.

Increasing popularity of cryptoassets in the UK

“This FCA report reveals the increasing popularity of cryptoassets among the UK consumer population and underlines the importance of our work to gain a deeper understanding of this market and how people interact with these assets,” the FCA’s interim executive director of strategy and competition, Sheldon Mills, said.

“Cryptoassets present risks and opportunities for consumers and we hope these insights will help inform the policy debate in the UK and internationally as the use of these assets continue to grow,” he added.

The FCA has previously warned that cryptoassets are highly volatile and risky. Many are not currently regulated in the UK. This means that the transfer, purchase, and sale of such tokens currently fall outside our regulatory remit, leaving customers unable to make complaints to the Financial Ombudsman Service or seek protection from the Financial Services Compensation Scheme.

The FCA said that it is working with the Government and Bank of England, as part of a UK Cryptoassets Taskforce, to understand and address the harms from cryptoassets whilst encouraging innovation in the interests of consumers.

In its March 2020 budget, the Government said it intends to consult on measures to bring certain cryptoassets into the scope of financial promotions Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.

A policy statement is due this year following a consultation on banning the sale of certain cryptoasset derivatives to retail investors.