FCA Finds 12% of UK Adults Now Own Cryptocurrencies
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The Financial Conduct Authority (FCA) has shared new findings about how people in the UK view and use cryptocurrencies. According to the report, 12% of UK adults now own crypto, compared to 10% in previous surveys.
Awareness of crypto also increased slightly, rising from 91% to 93%. The average value of crypto holdings grew from £1,595 to £1,842.
FCA Highlights Need For Clear Rules As Crypto Risks And Ownership Grow
The FCA said the research revealed that family and friends are the main sources of information for those not yet involved in crypto. Meanwhile, only 10% of participants admitted they did no research before purchasing crypto.
Around one-third of respondents believed they could report issues to the FCA if problems arose, expecting support or protection. However, the FCA stated that crypto remains largely unregulated in the UK and warned that buyers face high risks.
The authority said there is no guarantee of financial protection, and consumers should be prepared for potential losses.
Matthew Long, Director of Payments and Digital Assets at the FCA, said the findings showed the need for better rules to support a safe and trustworthy crypto market.
He said the research showed the need for clear rules to support a safe, competitive, and sustainable crypto sector in the UK. He explained that the goal is to build a sector that encourages innovation while maintaining market integrity and consumer trust.
FCA Focuses On Crypto Regulations, Consumer Protection, And Education
Long added that the FCA is working with the Government, international partners, and the industry to shape future rules. He noted that a roadmap outlining key steps for crypto regulation in the UK has been published. This includes consultations designed to allow public input and create flexible policies.
The FCA also reported on efforts to reduce illegal crypto promotions. Following new laws introduced in October 2023, the FCA issued 1,702 alerts in the first year, removed over 900 scam websites, and took down more than 50 apps.
To help businesses, the FCA said it plans to launch a webpage highlighting risks for firms offering services to unregistered crypto companies. It will also suggest ways firms can lower these risks.
Efforts to warn consumers about high-risk investments like crypto are ongoing. The FCA’s ScamSmart campaign and the £11 million InvestSmart program aim to educate the public about these dangers and promote smarter investment choices.
Chris Recker, a legal expert on digital assets, noted the challenges victims face when trying to recover funds. He said the cost of recovery often outweighs the potential benefits and noted that there is no certain or guaranteed way to recover funds.
