Monday, August 2, 2021

Over 2 million adults in UK now hold crypto, FCA survey finds

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A brand new examine by the UK’s Monetary Conduct Authority has indicated a big improve in cryptocurrency possession within the nation.

On Thursday, the FCA published the outcomes of a shopper survey which discovered that 2.3 million adults within the U.Ok. now maintain crypto belongings, up from 1.9 million final yr. Alongside the rising variety of crypto traders, the examine additionally recognized a surge in possession volumes, with median holdings rising to 300 British kilos ($420) from 260 kilos ($370) in 2020.

The rising reputation of holding cryptocurrency comes in step with an uptick within the consciousness stage as 78% of adults mentioned they’ve heard of crypto, up from 73% final yr.

Supply: FCA

Regardless of the rising consciousness and possession of crypto, the FCA examine has flagged a notable decline in understanding of cryptocurrencies, suggesting that some individuals who have heard of crypto could not absolutely perceive it.

In keeping with the report, solely 71% of respondents accurately recognized the definition of cryptocurrency from an inventory of statements, down 4% from 2020. “This means there could also be a threat of customers participating with cryptocurrency with out a clear understanding of it,” the FCA famous.

Associated: Crypto and ‘meme stocks’ shunned by 90% of UK financial advisers

Sheldon Mills, the FCA’s govt director of customers and competitors, mentioned that some U.Ok. traders have benefitted from the bull market this yr. “Nevertheless it can be crucial for purchasers to grasp that as a result of these merchandise are largely unregulated that if one thing goes improper they’re unlikely to have entry to the FSCS or the Monetary Ombudsman Service,” he added.

The FCA examine additionally mentioned that U.Ok. customers considerably favor Bitcoin (BTC) over different cryptocurrencies, with 82% of respondents recognizing BTC. Amongst those that acknowledged not less than one cryptocurrency, 70% acknowledged solely Bitcoin, up 15% from 2020, the examine mentioned. “It appears probably many adults who’ve now heard of cryptocurrency are solely acquainted with Bitcoin,” the FCA said.

Supply: FCA