2.3M UK Consumers Hold Crypto: FCA Finds An 'Increase In Ownership'

United Kingdom regulator Financial Conduct Authority (FCA) found an "increase in ownership but a decline in understanding of" cryptocurrencies in the country with a survey including 2,568 online respondents.

What Happened: According to a study published by the FCA on Thursday, 2.3 million U.K. adults hold cryptocurrencies — 400,000 more than the previous year.

The regulator also noted that among the holders 38% believe it to be a gamble (down from 47% the previous year), with more investors now seeing them as a complement or alternative to mainstream investments. 

The average invested amount was £300 ($418). 

Sheldon Mills, FCA’s Executive Director, Consumers and Competition warned: "The research highlights increased interest in cryptoassets among UK customers. ... It is important for customers to understand that because these products are largely unregulated that if something goes wrong they are unlikely to have access to the FSCS or the Financial Ombudsman Service. If consumers invest in these types of products, they should be prepared to lose all their money."

The FCA notes that only 71% correctly identified the definition of cryptocurrency from a list of statements and 78% of all adults have heard of them — 5% up from the previous year.

Interestingly, investors who only own Bitcoin BTC/USD were more likely to understand cryptocurrencies and more likely to plan to buy more in the future.

(Image by Eivind Pedersen from Pixabay)

Posted In: CryptocurrencyNewsGlobalMarketsCryptoUK
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