Estimated 7m UK adults own cryptoassets, says FCA #UKFinance

Around seven million adults in the UK own cryptoassets, according to estimates published by the City regulator.

One in eight (12%) UK adults own cryptocurrencies, up from 10% (around five million adults) in 2022, according to the Financial Conduct Authority (FCA).

The average cryptocurrency holding totals £1,842.

The main method of funding cryptoassets among users continues to be the person’s own disposable cash/income (72%).

Awareness of cryptoassets was found to be high among the UK general public, with 93% saying they have heard of them in the latest study.

Traditional news and media are the main source people first hear about cryptoassets from, the research indicated, with online news including blogs and forums tied in second place with social media.

Among crypto users, friends and family members were found to be the most common source of information for first hearing about cryptoassets.

Around a third of people said they believed they could raise a complaint with the FCA if something went wrong and were seeking recourse or financial protection.

But the regulator said that, while some rules are in place, currently crypto remains largely unregulated in the UK and high-risk.

If something goes wrong, people should be prepared to lose all their money, it warned.

Research was carried out for the FCA by YouGov in August, involving interviews with over 2,000 reflecting the UK adult population as well as a second phase of interviews among around 1,000 adults who had used cryptoassets.

The FCA said it has continued to supervise cryptoasset activities in the UK within its remit.

Following a change in legislation, it has introduced the cryptoasset financial promotions regime to help people make more informed financial decisions.

The FCA has also published a roadmap for regulation, which sets out a series of consultations.

Matthew Long, director of payments and digital assets at the FCA, 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.”