Adult Crypto Holders in the UK now at 2 Million – FCA Survey
A new survey by the United Kingdom Financial Conduct Authority (FCA) has revealed that the acceptance for cryptocurrency has risen against the figure recorded in 2020. Results from the survey pointed to the fact that a number of United Kingdom’s citizens are now buying in on cryptocurrencies. The survey results last year indicated that 1.9 million citizens were interested in buying and holding cryptocurrencies. The figure of this year’s results stands at 2.3 million adult citizens who are now holding crypto assets.
Increase in Volume of Crypto Holdings Suggests More Buys
The survey also stated that the volume of crypto assets held by the investors have increased as well. Average volume of cryptocurrencies being held as shown in last year’s survey result stood at £260. However, the volume has increased to £360 according to the survey results for this year, which also indicates that UK investors are buying in on the dip. This is well at variance with the anticipated outcome of the UK’s government proposed move to issue a Central Bank Digital Currency (CBDC) showing their disfavor against cryptocurrencies.
Since attempts are being made by the UK government to launch a CBDC, it was expected that the awareness on cryptocurrencies would have reduced. However, the figure on crypto awareness is dwarfed by those of countries like China. An uptrend was also suggested by the survey as the awareness level on cryptocurrencies leaped from 73% in 2020 to 78% this year. The figure stood at 45% in 2019. Interestingly, that is a massive uptick. However, the leap in awareness and crypto holdings vary from the understanding of cryptos by these investors as indicated by the Financial Conduct Authority’s survey. Some respondents acknowledged that they had only heard about cryptocurrencies and do not actually understand it.
FCA Advises Against the Ignorance of Crypto Investors
The FCA’s survey indicated that only 71% could actually define cryptocurrencies from the questions they were asked. The figure stood at 74% last year– a 4% decline in this year’s figure. The FCA highlighted the risks investors who do not have a comprehensive knowledge of crypto are likely to face. Sheldon Mills, executive director of consumers and consumption, FCA, noted that some investors gained profits on their investments following the bull run that occurred in the first quarter of the year. He further warned that the cryptocurrency space is largely without regulations and investors may not be able to complain to the responsible organization if they suffer losses on their investments.
According to the survey, most of the investors recognized the top crypto asset Bitcoin more than any other cryptocurrency. This is no surprise as Bitcoin is the pioneer of cryptocurrencies. 82% of the survey participants acknowledged that they know Bitcoin. While 70% of only those who were asked if they knew any cryptocurrency at all said they only knew Bitcoin. Last year, the figure was 55%. The survey stated that apparently those who have knowledge of cryptocurrencies are only familiar with Bitcoin.
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