FCA research reveals 1.1 million spike in crypto asset buyers and many were convinced to buy by ads

From: RegTech Analyst

An estimated 2.6 million UK consumers have bought cryptoassets at some point, new research from the Financial Conduct Authority (FCA) reveals.

That means that roughly 1.1 million more people have bought cryptoassets than 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 conducted the research alongside the UK government and Bank of England to understand market size, consumer profiles and attitudes towards cryptoassets. The study conducted online by YouGov and saw a total of 2,681 participants polled.

The research also found that most cryptoasset owners are generally knowledgeable about the product, are aware of the lack of regulatory protection afforded and understand the risk of price volatility.

That being said, an estimated 300,000 cryptoasset owners believe they have protection, which leaves them at potential risk of financial harm, the FCA warned. The resarch also revealed that more than a third of respondents saying an advert made them more likely to purchase cryptoassets. Of those who have purchased cryptoassets, 83% do so through non-UK based exchanges.

“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,” said Sheldon Mills, interim executive director of strategy and competition at the FCA.

“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.”

Copyright © 2020 FinTech Global

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