FCA Research Says 2.6 Million UK Residents Have Bought Crypto

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The United Kingdom’s Financial Conduct Authority estimates that roughly 2.6 million U.Okay. shoppers have purchased cryptocurrency “at some point.”

On June 30, the FCA revealed the outcomes of its newest analysis into how shoppers work together with crypto markets within the U.Okay. It discovered that 1.9 million folks — 3.86% of the final grownup inhabitants (18+) — at the moment personal cryptocurrency. 

This presents what the FCA considers to be a “statistically significant increase,” up from 3% within the final FCA client analysis report in 2019. 

The improve brings the whole variety of U.Okay. shoppers who’ve ever held cryptocurrencies at any level up from 1.5 million to its present estimated determine of two.6 million.

Aside from the marked uptick in crypto house owners, consciousness of the business seems to be on the rise — 73% of adults have heard of cryptocurrencies, as in contrast with 42% final 12 months.

Further breakdown of the watchdog’s findings

The FCA’s analysis signifies that 75% of the 1.9 million at the moment holding crypto maintain below £1,000 ($1,229) value. 83% of crypto house owners purchase their property by way of non-U.Okay. based mostly exchanges. 

In normal, holders’ stage of technical data and understanding of the potential dangers related to lack of protections and asset volatility is excessive, in line with the FCA.

One exception is that 11% of present and former crypto holders mistakenly imagine their crypto property are coated by client protections — amounting to roughly 300,000 folks. 

The FCA believes that this locations these shoppers prone to monetary hurt. Yet it additionally discovered, in parallel, that the preferred purpose for U.Okay. shoppers to purchase crypto was “as a gamble that could make or lose money,” with full consciousness of the volatility in crypto markets.

Another key discovering within the analysis is the obvious prevalence of crypto-related advertisements and their affect on client choices. 

45% of present and former holders mentioned they’d seen a crypto-related advert, of which 35% (400,000 folks) mentioned it made them extra more likely to buy crypto. Overall, 16% of present and former crypto-owners mentioned they’d been influenced by promoting.

Summary of FCA analysis findings, Dec. 2019. Source: FCA

The U.Okay. crypto local weather

As reported earlier this week, the FCA has simply launched an in depth assertion urging all native crypto enterprise operators to register with the authority by right this moment. Its newest registration necessities include a collection of particular compliance measures, primarily within the areas of Anti-Money Laundering and Counter-Terrorism Financing. 

In its announcement right this moment, the FCA famous it’s working with the federal government and Bank of England as a part of the U.Okay. Cryptoassets Taskforce to sort out crypto-related client dangers whereas encouraging innovation. 

The U.Okay.’s authorities price range in March 2020 indicated the federal government plans to seek the advice of on measures to doubtlessly deliver sure crypto property into the scope of monetary promotions regulation.


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