UK’s Financial Conduct Authority (FCA) submitted a press release on 07 March that summarizes the country’s consumer attitudes towards crypto assets.
The press release headlined that the FCA has published two pieces of research that examine the citizen’s view of cryptocurrencies like Bitcoin and Ether. These two pieces of research include qualitative interviews by Revealing Reality with UK customers and a national survey by Kantar TNS.
The press release captured the essence of the qualitative research revealing that many consumers could well be misunderstanding cryptocurrencies. Many consumers were unaware that they could buy fractional digital coins and assumed they had to buy whole. However, even with this lack of awareness, consumers looked forward to making quick money with cryptos.
The press release explained that both the pieces of original research suggested many crypto asset owners made their purchases without resorting to any prior study. However, findings from the survey indicate that despite poor understanding among UK nationals, the scale of harm is not major as previously construed.
The press release highlighted that the national survey revealed staggering numbers. About 73% of UK consumers surveyed were unaware of the role of cryptocurrencies. Men aged between 20 and 44 were found to be knowledgeable about digital coins. Only 3% of the surveyed nationals had ever bought crypto assets.
Christopher Woolard, the FCA’s Executive Director of Strategy and Competition cited –
“This research gives us the evidence we haven’t had before about how consumers interact with crypto assets. This will help us ensure we are acting on evidence as we seek to protect consumers and market integrity. The results suggest that although crypto assets may not be well understood by many consumers, the vast majority don’t buy or use them currently. Whilst the research suggests some harm to individual crypto asset users, it does not suggest a large impact on wider society.”
The press release captured a surprising point that although the FCA had previously warned that cryptocurrencies like Bitcoin are highly volatile and risky, about 50% of the surveyed owners possessed bitcoins. The next most favored cryptocurrency was Ether amounting to 34%.
The press release concluded on a note informing that many digital tokens are currently not regulated in the UK. What this implies is that cryptocurrency transactions do not fall in the purview of the law and missteps would not be duly addressed. The FCA is working with the Government and Bank of England to cater to the growing crypto needs.