A brand new examine by the UK’s Monetary Conduct Authority has indicated a major enhance in cryptocurrency possession within the nation.
On Thursday, the FCA published the outcomes of a shopper survey which discovered that 2.3 million adults within the U.Okay. now maintain crypto belongings, up from 1.9 million final yr. Alongside the rising variety of crypto traders, the examine additionally recognized a surge in possession volumes, with median holdings rising to 300 British kilos ($420) from 260 kilos ($370) in 2020.
The rising reputation of holding cryptocurrency comes according to an uptick within the consciousness stage as 78% of adults stated they’ve heard of crypto, up from 73% final yr.
Regardless of the rising consciousness and possession of crypto, the FCA examine has flagged a notable decline in understanding of cryptocurrencies, suggesting that some individuals who have heard of crypto could not absolutely perceive it.
Based on the report, solely 71% of respondents accurately recognized the definition of cryptocurrency from a listing of statements, down 4% from 2020. “This implies there could also be a danger of customers partaking with cryptocurrency with out a clear understanding of it,” the FCA famous.
Sheldon Mills, the FCA’s government director of customers and competitors, stated that some U.Okay. traders have benefitted from the bull market this yr. “Nevertheless it is vital for patrons to know that as a result of these merchandise are largely unregulated that if one thing goes mistaken they’re unlikely to have entry to the FSCS or the Monetary Ombudsman Service,” he added.
The FCA examine additionally stated that U.Okay. customers considerably favor Bitcoin (BTC) over different cryptocurrencies, with 82% of respondents recognizing BTC. Amongst those that acknowledged at the least one cryptocurrency, 70% acknowledged solely Bitcoin, up 15% from 2020, the examine stated. “It appears seemingly many adults who’ve now heard of cryptocurrency are solely acquainted with Bitcoin,” the FCA said.