The Financial Conduct Authority (FCA) published a study on Tuesday highlighting the UK adults’ growing interest in cryptocurrencies. The report revealed that 12% of UK adults now have cryptocurrency, an increase from the 10% recorded in other polls. This increase means cryptocurrency usage is becoming popular, meaning the asset class is gradually being adopted into the market.
The platform’s survey showed increased awareness of crypto assets, with 93% of UK adults now acknowledging familiarity with cryptocurrencies, up from 91% previously. The total worth of cryptocurrency per consumer has risen from £1,595 to £1,842, aligning with the shift of view on cryptocurrencies.
The FCA’s study also reveals how consumers are being introduced to cryptocurrency. New investors often rely on information from family, friends, and others within their social circle, as they seek advice from those they trust. The survey found that only one in ten respondents had purchased cryptocurrency without first conducting research.
FCA’s Investment Caution
Even as cryptocurrency users grow, the FCA maintains its advisory against investing in digital currencies. It also points out that while cryptocurrency is gaining much traction in the UK in its current state, it lacks a legal framework and is a very high-risk investment. The FCA has revealed that consumers who invest in cryptocurrencies should prepare to lose their money as crypto is highly volatile.
Matthew Long, the FCA’s Director of Payments and Digital Assets, stated that the key priority is to develop a regulatory approach for cryptocurrencies. This approach would allow for the development of safe and competitive markets. He stated:
We’re committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right.
Crypto in Investment Portfolios
The report also shows that most consumers now have crypto as part of their other investment portfolios. Also, using credit cards or overdrafts to purchase cryptocurrency has increased, with 14% of crypto users in 2024 compared to 6% in 2022.
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The FCA’s findings revealed a shift in consumer attitude as the value of cryptocurrencies rose. The authority noted that 26% of non-crypto owners would invest if the market were well-regulated, highlighting the importance of regulatory clarity in increasing adoption. This implies that better-defined laws could help the crypto industry’s growth while protecting investors.
