The Financial Conduct Authority (FCA) of the UK has established that an estimated 2,6 million people in the country have bought cryptocurrencies – a significant rise from 12 months ago.
A research on the web, initiated by YouGov, the FCA estimated that there are 1.9 million people currently holding cryptocurrency, with roughly half of them holding more than £260 worth of digital money.
The research was aimed at gaining an understanding of consumer attitudes towards digital currency and the size of the market for it. The survey, conducted on the web, showed that over 83% of the responders have bought their cryptocurrency from exchanges based outside of the UK.
Around 33% of the people that participated in the survey say that adverts are likely to influence them towards the decision of buying.
Meanwhile, the FCA notes that much of the assets of these owners are unprotected by the government, which leaves them unable to file complaints or seek compensation from the Financial Services Compensation Scheme. However, the institution also found out that many crypto enthusiasts are leaving themselves space for potential financial losses.
One of the main conclusions that the FCA derives from its research is that while the market for cryptocurrencies in the UK continues to grow, it is important to provide to the consumers a deeper understanding of this market and inform them how to work with these assets. While most holders of cryptocurrency are knowledgeable about their assets, there are many who still do not realize their cryptocurrency wallet is unprotected by the government like the assets, stored in banks are.
“Cryptoassets represent both risk and an opportunity”, noted the FCA interim executive Sheldon Mills.
In March 2020, the UK government announced its plans to consult on measures that will enlist certain cryptocurrencies in the scope of financial promotions regulation.
Just recently, the UK High Court decided for the closure of a fraudulent cryptocurrency platform, named GPay, where clients lost £1.5 million to the firm.
