Around a third of the British public falsely believes they could raise a complaint with the FCA if something goes wrong with a cryptocurrency investment.
That is according to the results of a YouGov survey commissioned by the Financial Conduct Authority (FCA), which also found awareness of crypto has risen to 93% from 91% one year ago and 73% in 2020.
Around a quarter of respondents who have not bought cryptoassets said they would be more likely to buy them if the market and activities were regulated.
The regulator stated the results show the need for clearness around rules in the crypto sector, given that it remains largely unregulated and high-risk. A large proportion of people appear to be unaware that it is unlikely their money will be protected should something go wrong
FCA director of payments and digital assets Matthew Long said: “Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK.
“We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust.
“We’re committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right.”
12% of the public owns crypto
Interest in cryptocurrency among the UK public has heightened as the price of bitcoin has surged towards $100,000 (£79,000) over the last year.
- How to buy Bitcoin safely in the UK – read our expert guide.
The FCA crypto survey showed the percentage of people holding cryptocurrency has risen to 12% from 10% in 2022, with the average value held rising from £1,595 to £1,842.
Those with a larger amount invested, or 75% of those with assets over £1,000 invested, were more likely to say they have had a positive experience and are likely to buy more crypto in the future.
By comparison, around half of those with £1,000 or less invested said they had a positive experience and are likely to buy more.
Family and friends were the primary source of information about crypto for those who had never bought it, with 20% of respondents saying this was the main reason for their purchase.
Only 1 out of 10 people who bought crypto said they did not do any research beforehand.
The survey results highlight the urgent need for the FCA to develop its regulatory regime surrounding crypto, a task it has already been given by previous governments, which seek to make the UK a hub for the industry.
In the UK, only firms on the FCA’s Cryptoasset Firms register are allowed to offer crypto investing and trading services to UK customers.
The 44 firms on the list (as 11/9/24), as well as information regarding their services, can be viewed here.
The FCA became responsible for regulating crypto promotions in 2023. Since then, the regulator has issued 1702 alerts, taking down over 900 scam crypto websites and over 50 apps.
In October, the financial watchdog reiterated its rules against selling cryptocurrency products such as exchange traded funds (ETFs) to retail investors.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
