FCA Survey Finds Adults holding Cryptocurrencies in the UK have Increased by 21% in Last 1-year to 2.3 Million
A new study by the Financial Conduct Authority (FCA) of the United Kingdom has indicted that there has been a significant increase in the ownerships of cryptocurrencies in the UK. The FCA result published on Thursday said that the total number of adults holding cryptocurrencies in the UK has increased from 1.9 million in 2020 to 2.3 million a year after. This means, the number of adults holding cryptos have increased by around 21% in just one year span.
The FCA study found that in the United Kingdom there has been a significant rise in ownership volumes. The median holdings rose from 260 British Pounds ($370) in 2020 to 300 British Pounds (US$420) in 2021. This irsing volume of crypto holdings come at a time when the awareness level of adults about cryptourrencies increased from 73% last year to 78% now.
However, the FCA study also found out that the understanding of cryptocurrencies has declined from 75% in 2020 to 71% in 2021. The report noted that “this suggests there may be a risk of consumers engaging with cryptocurrency without a clear understanding of it.”
Sheldon Mills, the FCA’s executive director of consumers and competition, has underscored the point that the crypto investors in the UK have benefitted immensely from the bull market in 2021. He also said:
“However it is important for customers to understand that because these products are largely unregulated that if something goes wrong they are unlikely to have access to the FSCS or the Financial Ombudsman Service.”
The consumers of UK seems to significantly favor Bitcoin (BTC) over other cryptocurrencies. That’s why 82% of the respondents recognized bitcoin. Out of those who recognized just one crypto, 70% of them recognized just Bitcoin (BTC). This is a significant rise (by 15%) since 2020. The FCA study says:
“It seems likely many adults who have now heard of cryptocurrency are only acquainted with Bitcoin.”