More than one in ten Brits now own cryptocurrency, according to research from the Financial Conduct Authority.
As it prepares to roll out a new crypto regime, the regulator says 12% of UK adults now own Bitcoin and other coins, up from 10% in previous findings. Awareness of crypto also rose from 91% to 93% and the average value held increased from £1,595 to £1,842.
Around a third of people say they believe they could raise a complaint with the FCA if something went wrong and were seeking recourse or financial protection. This, notes the watchdog, is unlikely because currently crypto remains largely unregulated in the UK.
This is about to change, with the FCA starting to share their approach to regulating crypto, publishing an indicative roadmap of key dates for the development and introduction of the regime, featuring a series of focused consultations.
Matthew Long, director of payments and digital assets, FCA, says: “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.
Chris Recker, a legal director at law firm Kingsley Napley specialising in digital assets, comments: “The FCA's research shows the ever-growing appeal of the crypto assets space for UK investors from novices to sophisticated financial professionals.
"However, we also find there is often a perception this is a more regulated space than is the case which is worrying. Not only can people lose their investment due to poor investment decisions but scammers frequently operate in this sector duping people out of sizeable sums."
Paul Waterman, partner at GSB Wealth, adds: "While cryptocurrencies continue to captivate attention and experience growth, as wealth planners, we remain cautious about incorporating them into comprehensive financial strategies at this stage.
"These digital assets are primarily used as a medium of exchange or a store of value. However, given the highly volatile nature, their inherent value is still questionable. Furthermore, with the regulatory landscape around cryptocurrencies still evolving, the limited recourse available for investors presents additional risks."