A new report published by the United Kingdom Financial Conduct Authority (FCA) reveals that the number of cryptocurrency investors in the region has more than doubled in the past year.
The research revealed that as of August 2022, 4.97 million UK adults held cryptocurrencies and related investment products. The current figure is more than twice the 2.3 million reported in 2021, denoting a significant increase in public demand for cryptocurrencies.
The FCA survey provided further insights into the behavior of UK-based crypto investors. For instance, it revealed that the vast majority understand the asset class, with up to 74% of respondents correctly recognizing its definition as provided by the FCA.
Further, many have taken a long-term approach to investing, remaining undeterred by the ongoing bear market that has seen most cryptocurrencies lose more than 80% of their value since November 2021. Per the research, 58% of investors remain indifferent or unaffected by the declining prices and continue to hold or increase their exposure. The average porti
Other notable findings by the UK FCA are that public awareness of cryptocurrencies is on the rise, while clearer regulation could lead to more investment in the nascent space. Around 91% of UK adults have heard about cryptocurrencies, while 28% of non-crypto investors captured in the survey claimed they would invest in the space if regulations improved.
FCA Eyes More Crypto Regulation
In addition to its annual survey of the crypto market participants, the UK FCA has progressively introduced new measures under its stated mandate to protect new investors. Starting October 8, the UK FCA is set to welcome a new set of rules that would prevent new investors from buying assets on crypto platforms within 24 hours following registration.
Additionally, the regulator plans to ban “refer a friend” programs that reward investors with cryptocurrencies for inviting others to register. These measures, according to the FCA, would lower the chance of noobs falling victim to scams. It will also confer on crypto platforms the responsibility of ensuring that “people have the appropriate knowledge and experience to invest in crypto.”
