According to a research report conducted by the UK FCA, an estimated 2.6 million UK people at some point purchased cryptocurrency, a significant increase from 3% to 5.35% this year.
01 July, 2020, | AtoZ Markets – The FCA has published a research report in collaboration with the Bank of England and the Government as part of the UK National Task Force on cryptocurrency. The study highlights market size, consumer profiles and attitudes towards cryptocurrency. The FCA says:
“We commissioned quantitative research among a sample of crypto-asset owners. It ensure our understanding of consumer behaviour and areas of potential harm was accurate.”
Spike in Cryptocurrency Buyers
The research report highlights that the number of people who own or owned cryptocurrencies has increased to 5.35% this year from 3% in 2019. 2.6 million people own cryptocurrency in this year and 1.5 million in last year. The most common reason for consumers to buy cryptocurrency was “as gambling that can make or lose money,” due to price volatility.
The study found that 3.86% of UK people now hold the cryptocurrency. 50% of current cryptocurrency holders hold less than £260. Moreover, 75% of people say £1,000 or less, 90% of people say £4,300 or less. Those who purchased cryptocurrency on an online exchange:
- 5% used only UK based exchanges
- 12% used both the UK and non-UK based exchanges
- 83% used only non-UK based exchanges
17% of cryptocurrency owners reported having a negative experience related to owning or purchasing cryptocurrency. The major reasons are exchange fees, trading hours, theft of cryptocurrencies, and changes in the value of cryptocurrencies. Sheldon Mills, the FCA’s interim executive director of strategy and compliance said:
“This FCA report reveals the increasing popularity of crypto assets among the UK consumer population. It underlines the importance of our work to gain a deeper understanding of this market and how people interact with these assets.”
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