2.3 Million UK Adults Hold Crypto Assets: FCA

The United Kingdom’s Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) on Thursday published a consumer research report on crypto assets, revealing that 2.3 million adults in the country are now holding digital assets. This number was at 1.9 million at the end of 2020.

The report highlights the penetration of crypto assets among regular retail investors, and attitudes towards such assets are changing.

It outlines that 78 percent of UK adults have heard of crypto assets, jumping from 73 percent over a year. Additionally, only 38 percent of the survey participants consider crypto as a gamble, which is down from 47 percent last year. Most of the participants regarded cryptos as an alternative investment vehicle.

“The research highlights increased interest in crypto assets among UK customers. The market has continued to grow, and some investors have benefitted as prices have risen,” said Sheldon Mills, FCA’s Executive Director of Consumers and Competition.

Understanding of Crypto Is Declining

However, the results are a bit of concern as well. The overall understanding of crypto assets has declined, with only 71 percent of the survey participants correctly identifying the definition of crypto assets.

The FCA has been overseeing the UK’s crypto-asset market and actively issuing warnings against the risks of investing in such assets. Only 10 percent of the respondents aware of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term also know about the FCA warnings and 43 percent among them were discouraged from purchasing cryptos.

But, the enthusiasm regarding cryptos is clearly increasing as more than half of the participants had a positive experience from crypto investments, while only 11 percent regret their decisions.

Interestingly, crypto investments are increasing despite a majority of the consumers recognize that crypto investments are not protected.

“It is important for customers to understand that because these products are largely unregulated that if something goes wrong they are unlikely to have access to the FSCS or the Financial Ombudsman Service. If consumers invest in these types of products, they should be prepared to lose all their money,” Mills added.