The regulator also noted that 75% of them hold crypto worth less than £1,000.
Good technical knowledge base
The FCA revealed that most of the crypto owners in the nation had a considerable technical grasp of cryptocurrencies, such as their high volatility and the underlying blockchain technology.
The financial watchdog also acknowledged that citizens holding cryptocurrencies rose to 2.6 million from 1.5 million recorded in 2019. Non-UK based crypto exchanges have played an instrumental role in elevating ownership.
Cryptocurrency awareness has also been on the rise in the United Kingdom because it rose to 73% from 42% recorded last year. This trend is attributed to increased media coverage as crypto adverts are given more airplay. For instance, 16% of current and previous owners were swayed by an advertisement.
Nearly 300,000 crypto owners believe that their cryptocurrencies have consumer protections, whereas this is not the case, and the regulator believes this jeopardises their financial security.
Investment risk aware
The FCA revealed some interesting insights into how UK crypto investors see cryptocurrencies, they are viewed as a gamble that could make or lose money and only 15% regret having bought them. This shows the risk tolerance they are willing to accept.
According to the report, “When asked why they bought cryptocurrencies, 47% said they bought cryptocurrencies ‘as a gamble that could make or lose money’ compared with 31% in the 2019 consumer research as one of the main reasons. Only 15% stated that they were ‘expecting to make money quickly.”
Bitcoin emerged to be the most popular cryptocurrency at 78% not surprisingly, followed by Libra at 22%, even though it has not been launched yet.
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